DFEN vs. SMST
DFEN (Direxion Daily Aerospace & Defense Bull 3X Shares) and SMST (Defiance Daily Target 2X Short MSTR ETF) are both exchange-traded funds - DFEN is a Leveraged Equities fund tracking the Dow Jones U.S. Select Aerospace & Defense Index (300% Daily), while SMST is a Inverse Equities fund actively managed by Defiance. DFEN is passively managed, while SMST is actively managed. Over the past year, DFEN returned 45.63% vs 128.37% for SMST. Their -0.33 correlation means they have often moved in opposite directions in the past. DFEN charges 0.96%/yr vs 1.29%/yr for SMST.
Performance
DFEN vs. SMST - Performance Comparison
Loading charts...
Returns By Period
In the year-to-date period, DFEN achieves a 18.12% return, which is significantly higher than SMST's -35.77% return.
DFEN
- 1D
- 2.21%
- 1M
- -12.11%
- 6M
- -5.05%
- YTD
- 18.12%
- 1Y
- 45.63%
- 3Y*
- 65.26%
- 5Y*
- 33.44%
- 10Y*
- —
- ALL TIME*
- 16.64%
SMST
- 1D
- 8.37%
- 1M
- 5.47%
- 6M
- -29.35%
- YTD
- -35.77%
- 1Y
- 128.37%
- 3Y*
- —
- 5Y*
- —
- 10Y*
- —
- ALL TIME*
- -83.68%
Liquidity Comparison
| Position | Avg. Volume Value (2W) | Avg. Volume Value (1M) | Avg. Volume Value (3M) |
|---|---|---|---|
| $13.59M | $13.06M | $15.26M | |
| $15.35M | $15.12M | $17.58M |
DFEN vs. SMST - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | |
|---|---|---|---|
DFEN Direxion Daily Aerospace & Defense Bull 3X Shares | 18.12% | 156.62% | -3.17% |
SMST Defiance Daily Target 2X Short MSTR ETF | -35.77% | -44.36% | -91.71% |
Correlation
The correlation between DFEN and SMST is -0.36, meaning they have often moved in opposite directions in the past. This relationship can weaken or reverse as market conditions change.
| Correlation | |
|---|---|
Correlation (1Y) Focuses on recent behavior, but can change the most. | -0.36 |
Correlation (All Time) Calculated using the full available price history since Aug 21, 2024 | -0.33 |
Compare stocks, funds, or ETFs
Search for stocks, ETFs, and funds for a quick comparison or use the comparison tool for more options.
Return for Risk
DFEN vs. SMST — Risk / Return Rank
DFEN
SMST
DFEN vs. SMST - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Direxion Daily Aerospace & Defense Bull 3X Shares (DFEN) and Defiance Daily Target 2X Short MSTR ETF (SMST). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.
Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.
| DFEN | SMST | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.49 | ||
| Sortino ratioReturn per unit of downside risk | -0.79 | ||
| Omega ratioGain probability vs. loss probability | 1.15 | 1.27 | -0.11 |
| Calmar ratioReturn relative to maximum drawdown | 1.05 | 2.00 | -0.95 |
| Martin ratioReturn relative to average drawdown | 2.21 | 3.68 | -1.47 |
Loading charts...
Drawdowns
DFEN vs. SMST - Drawdown Comparison
The maximum DFEN drawdown since its inception was -91.36%, smaller than the maximum SMST drawdown of -99.25%. Use the drawdown chart below to compare losses from any high point for DFEN and SMST.
Loading charts...
Drawdown Indicators
| DFEN | SMST | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -91.36% | -99.25% | +7.89% |
Max Drawdown (1Y)Largest decline over 1 year | -41.75% | -85.39% | +43.64% |
Max Drawdown (3Y)Largest decline over 3 years | -43.13% | — | — |
Max Drawdown (5Y)Largest decline over 5 years | -51.96% | — | — |
Current DrawdownCurrent decline from peak | -22.59% | -97.48% | +74.89% |
Average DrawdownAverage peak-to-trough decline | -44.87% | -91.08% | +46.21% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 19.77% | 46.35% | -26.58% |
Volatility
DFEN vs. SMST - Volatility Comparison
The current volatility for Direxion Daily Aerospace & Defense Bull 3X Shares (DFEN) is 21.99%, while Defiance Daily Target 2X Short MSTR ETF (SMST) has a volatility of 38.14%. This indicates that DFEN experiences smaller price fluctuations and is considered to be less risky than SMST based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
Loading charts...
Volatility by Period
| DFEN | SMST | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 21.99% | 38.14% | -16.15% |
Volatility (6M)Calculated over the trailing 6-month period | 55.26% | 135.29% | -80.03% |
Volatility (1Y)Calculated over the trailing 1-year period | 67.94% | 151.04% | -83.10% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 60.84% | 166.75% | -105.91% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 71.57% | 166.75% | -95.18% |
DFEN vs. SMST - Expense Ratio Comparison
DFEN has a 0.96% expense ratio, which is lower than SMST's 1.29% expense ratio.
Dividends
DFEN vs. SMST - Dividend Comparison
DFEN's dividend yield for the trailing twelve months is around 7.51%, while SMST has not paid dividends to shareholders.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 |
|---|---|---|---|---|---|---|---|---|---|---|
DFEN Direxion Daily Aerospace & Defense Bull 3X Shares | 7.51% | 8.89% | 14.12% | 1.13% | 0.46% | 1.89% | 0.48% | 0.50% | 1.07% | 1.50% |
SMST Defiance Daily Target 2X Short MSTR ETF | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
Frequently Asked Questions
DFEN and SMST have a correlation of -0.36, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
SMST has higher volatility (38.14%) compared to DFEN (21.99%). In terms of maximum drawdown, DFEN dropped -91.36% vs SMST's -99.25%.
On 1-year performance, SMST leads with 128.37% vs 45.63% for DFEN. On fees, DFEN is cheaper at 0.96% per year. On volatility, DFEN has been the lower-risk option at 21.99%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 1-year period, SMST has performed better with a 128.37% return vs 45.63%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
DFEN is cheaper with a 0.96% expense ratio, compared with 1.29% for SMST.
DFEN has the higher dividend yield at 7.51%, compared with 0.00% for SMST.
DFEN is categorized as Leveraged Equities, while SMST is Inverse Equities. They also come from different issuers: Direxion and Defiance. Their fees differ too: 0.96% for DFEN and 1.29% for SMST.
SMST currently has the higher Sharpe Ratio (1.13 vs 0.64), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.
Find the right allocation for DFEN and SMST
Add both to a portfolio and optimize allocations for your target — whether that's maximizing returns, minimizing drawdowns, or balancing risk across holdings.
Open Portfolio Optimizer