EPU vs. SMST

Last updated Jun 26, 2026

EPU (iShares MSCI Peru ETF) and SMST (Defiance Daily Target 2X Short MSTR ETF) are both exchange-traded funds - EPU is a Mid Cap Blend Equities fund tracking the MSCI All Peru Capped Index, while SMST is a Inverse Equities fund actively managed by Defiance. EPU is passively managed, while SMST is actively managed. Over the past year, EPU returned 78.64% vs 236.89% for SMST. At a correlation of -0.32, they often move in opposite directions. EPU charges 0.59%/yr vs 1.29%/yr for SMST.

Performance

EPU vs. SMST - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares MSCI Peru ETF (EPU) and Defiance Daily Target 2X Short MSTR ETF (SMST). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, EPU achieves a 16.35% return, which is significantly higher than SMST's -5.14% return.

EPU

• 1D: -0.14%
• 1M: -2.13%
• YTD: 16.35%
• 6M: 15.72%
• 1Y: 78.64%
• 3Y*: 45.24%
• 5Y*: 29.08%
• 10Y*: 14.70%

SMST

• 1D: 18.45%
• 1M: 181.70%
• YTD: -5.14%
• 6M: 2.86%
• 1Y: 236.89%
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

EPU vs. SMST - Yearly Performance Comparison

	2026 (YTD)	2025	2024
EPU iShares MSCI Peru ETF	16.35%	86.87%	0.69%
SMST Defiance Daily Target 2X Short MSTR ETF	-5.14%	-44.36%	-91.71%

Correlation

The correlation between EPU and SMST is -0.30, 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	-0.30
Correlation (All Time) Calculated using the full available price history since Aug 21, 2024	-0.32

Return for Risk

EPU vs. SMST — Risk / Return Rank

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

EPU

EPU Risk / Return Rank: 78
EPU Sharpe Ratio Rank: 88
EPU Sortino Ratio Rank: 76
EPU Omega Ratio Rank: 78
EPU Calmar Ratio Rank: 82
EPU Martin Ratio Rank: 68

SMST

SMST Risk / Return Rank: 53
SMST Sharpe Ratio Rank: 54
SMST Sortino Ratio Rank: 55
SMST Omega Ratio Rank: 54
SMST Calmar Ratio Rank: 64
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.

EPU vs. SMST - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares MSCI Peru ETF (EPU) 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.

	EPU	SMST	Difference
Sharpe ratio: Return per unit of total volatility	2.52	1.63	+0.89
Sortino ratio: Return per unit of downside risk	2.94	2.35	+0.59
Omega ratio: Gain probability vs. loss probability	1.40	1.30	+0.10
Calmar ratio: Return relative to maximum drawdown	3.79	2.79	+1.00
Martin ratio: Return relative to average drawdown	10.77	5.52	+5.26

EPU vs. SMST - Sharpe Ratio Comparison

The current EPU Sharpe Ratio is 2.52, which is higher than the SMST Sharpe Ratio of 1.63. The chart below compares the historical Sharpe Ratios of EPU and SMST, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

EPU vs. SMST - Drawdown Comparison

The maximum EPU drawdown since its inception was -60.62%, smaller than the maximum SMST drawdown of -99.25%. Use the drawdown chart below to compare losses from any high point for EPU and SMST.

Drawdown Indicators

	EPU	SMST	Difference
Max Drawdown Largest peak-to-trough decline	-60.62%	-99.25%	+38.63%
Max Drawdown (1Y) Largest decline over 1 year	-20.85%	-85.39%	+64.54%
Max Drawdown (3Y) Largest decline over 3 years	-20.85%	—	—
Max Drawdown (5Y) Largest decline over 5 years	-35.59%	—	—
Max Drawdown (10Y) Largest decline over 10 years	-50.97%	—	—
Current Drawdown Current decline from peak	-10.30%	-96.27%	+85.97%
Average Drawdown Average peak-to-trough decline	-18.79%	-90.74%	+71.95%
Ulcer Index Depth and duration of drawdowns from previous peaks	7.32%	43.15%	-35.83%

Volatility

EPU vs. SMST - Volatility Comparison

The current volatility for iShares MSCI Peru ETF (EPU) is 12.14%, while Defiance Daily Target 2X Short MSTR ETF (SMST) has a volatility of 46.13%. This indicates that EPU 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.

Volatility by Period

	EPU	SMST	Difference
Volatility (1M) Calculated over the trailing 1-month period	12.14%	46.13%	-33.99%
Volatility (6M) Calculated over the trailing 6-month period	27.23%	130.40%	-103.17%
Volatility (1Y) Calculated over the trailing 1-year period	31.38%	146.32%	-114.94%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	25.12%	167.25%	-142.13%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	23.66%	167.25%	-143.59%

EPU vs. SMST - Expense Ratio Comparison

EPU has a 0.59% expense ratio, which is lower than SMST's 1.29% expense ratio.

Dividends

EPU vs. SMST - Dividend Comparison

EPU's dividend yield for the trailing twelve months is around 2.06%, while SMST has not paid dividends to shareholders.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
EPU iShares MSCI Peru ETF	2.06%	1.63%	5.78%	4.17%	5.56%	3.13%	1.91%	2.67%	1.53%	3.30%	0.85%	1.90%
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%	0.00%	0.00%

Frequently Asked Questions

Can I hold both EPU and SMST in my portfolio?

EPU and SMST have a correlation of -0.30, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, EPU or SMST?

SMST has higher volatility (46.13%) compared to EPU (12.14%). In terms of maximum drawdown, EPU dropped -60.62% vs SMST's -99.25%.

Which ETF is better, EPU or SMST?

On 1-year performance, SMST leads with 236.89% vs 78.64% for EPU. On fees, EPU is cheaper at 0.59% per year. On volatility, EPU has been the lower-risk option at 12.14%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, EPU or SMST?

Over the 1-year period, SMST has performed better with a 236.89% return vs 78.64%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, EPU or SMST?

EPU is cheaper with a 0.59% expense ratio, compared with 1.29% for SMST.

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

EPU has the higher dividend yield at 2.06%, compared with 0.00% for SMST.

What is the main difference between EPU and SMST?

EPU is categorized as Mid Cap Blend Equities, while SMST is Inverse Equities. They also come from different issuers: iShares and Defiance. Their fees differ too: 0.59% for EPU and 1.29% for SMST.

Which has better risk-adjusted returns?

EPU currently has the higher Sharpe Ratio (2.52 vs 1.63), 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.