ECLN vs. SMST

Last updated Jul 12, 2026

ECLN (First Trust EIP Carbon Impact ETF) and SMST (Defiance Daily Target 2X Short MSTR ETF) are both exchange-traded funds - ECLN is a Utilities Equities fund actively managed by First Trust, while SMST is a Inverse Equities fund actively managed by Defiance. Both are actively managed. At a correlation of -0.19, they often move in opposite directions. ECLN charges 0.97%/yr vs 1.29%/yr for SMST.

Performance

ECLN vs. SMST - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in First Trust EIP Carbon Impact ETF (ECLN) and Defiance Daily Target 2X Short MSTR ETF (SMST). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

ECLN

• 1D: —
• 1M: —
• 6M: —
• YTD: —
• 1Y: —
• 3Y*: —
• 5Y*: —
• 10Y*: —

SMST

• 1D: -1.67%
• 1M: 37.17%
• 6M: -24.18%
• YTD: -31.56%
• 1Y: 223.04%
• 3Y*: —
• 5Y*: —
• 10Y*: —

*Multi-year figures are annualized to reflect compound growth (CAGR)

ECLN vs. SMST - Yearly Performance Comparison

	2026 (YTD)	2025	2024
ECLN First Trust EIP Carbon Impact ETF	12.96%	16.78%	6.30%
SMST Defiance Daily Target 2X Short MSTR ETF	-31.56%	-44.36%	-91.71%

Correlation

The correlation between ECLN and SMST is -0.16, meaning they tend to move in opposite directions. This is especially valuable for risk management - when one declines, the other has historically tended to hold steady or rise.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	-0.16
Correlation (All Time) Calculated using the full available price history since Aug 21, 2024	-0.19

Return for Risk

ECLN vs. SMST — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

ECLN

Risk / return metrics aren't available yet — we need at least 12 months of trading data to calculate them.

SMST

SMST Risk / Return Rank: 53
SMST Sharpe Ratio Rank: 49
SMST Sortino Ratio Rank: 58
SMST Omega Ratio Rank: 58
SMST Calmar Ratio Rank: 60
SMST Martin Ratio Rank: 38

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

ECLN vs. SMST - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for First Trust EIP Carbon Impact ETF (ECLN) 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.

	ECLN	SMST	Difference
Sharpe ratio: Return per unit of total volatility	—	1.37	—
Sortino ratio: Return per unit of downside risk	—	2.22	—
Omega ratio: Gain probability vs. loss probability	—	1.29	—
Calmar ratio: Return relative to maximum drawdown	—	2.39	—
Martin ratio: Return relative to average drawdown	—	4.64	—

Drawdowns

Drawdown Indicators

	ECLN	SMST	Difference
Max Drawdown Largest peak-to-trough decline	—	-99.25%	—
Max Drawdown (1Y) Largest decline over 1 year	—	-85.39%	—
Current Drawdown Current decline from peak	—	-97.31%	—
Average Drawdown Average peak-to-trough decline	—	-90.88%	—
Ulcer Index Depth and duration of drawdowns from previous peaks	—	43.98%	—

Volatility

Volatility by Period

	ECLN	SMST	Difference
Volatility (1M) Calculated over the trailing 1-month period	—	56.47%	—
Volatility (6M) Calculated over the trailing 6-month period	—	135.94%	—
Volatility (1Y) Calculated over the trailing 1-year period	—	149.09%	—
Volatility (5Y) Calculated over the trailing 5-year period, annualized	—	167.87%	—
Volatility (10Y) Calculated over the trailing 10-year period, annualized	—	167.87%	—

ECLN vs. SMST - Expense Ratio Comparison

ECLN has a 0.97% expense ratio, which is lower than SMST's 1.29% expense ratio.

Dividends

ECLN vs. SMST - Dividend Comparison

Neither ECLN nor SMST has paid dividends to shareholders.

Position	TTM	2025	2024	2023	2022	2021	2020	2019
ECLN First Trust EIP Carbon Impact ETF	1.43%	1.97%	2.52%	2.54%	1.72%	1.66%	1.68%	0.71%
SMST Defiance Daily Target 2X Short MSTR ETF	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both ECLN and SMST in my portfolio?

ECLN and SMST have a correlation of -0.16, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which ETF is better, ECLN or SMST?

On fees, ECLN is cheaper at 0.97% per year. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF is cheaper, ECLN or SMST?

ECLN is cheaper with a 0.97% expense ratio, compared with 1.29% for SMST.

Which ETF pays a higher dividend yield, ECLN or SMST?

ECLN has the higher dividend yield at 1.43%, compared with 0.00% for SMST.

What is the main difference between ECLN and SMST?

ECLN is categorized as Utilities Equities, while SMST is Inverse Equities. They also come from different issuers: First Trust and Defiance. Their fees differ too: 0.97% for ECLN and 1.29% for SMST.