ETCG vs. SMST

Last updated Jul 16, 2026

ETCG (Grayscale Ethereum Classic Trust (ETC)) and SMST (Defiance Daily Target 2X Short MSTR ETF) are both exchange-traded funds - ETCG is a Cryptocurrency fund tracking the Ethereum Classic (ETC), while SMST is a Inverse Equities fund actively managed by Defiance. ETCG is passively managed, while SMST is actively managed. Over the past year, ETCG returned -59.15% vs 213.47% for SMST. At a correlation of -0.54, they often move in opposite directions. ETCG charges 2.50%/yr vs 1.29%/yr for SMST.

Performance

ETCG vs. SMST - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Grayscale Ethereum Classic Trust (ETC) (ETCG) 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, ETCG achieves a -38.98% return, which is significantly lower than SMST's -36.56% return.

ETCG

• 1D: 0.00%
• 1M: -3.70%
• 6M: -45.78%
• YTD: -38.98%
• 1Y: -59.15%
• 3Y*: -19.19%
• 5Y*: -32.50%
• 10Y*: —

SMST

• 1D: 0.19%
• 1M: 44.40%
• 6M: -6.67%
• YTD: -36.56%
• 1Y: 213.47%
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

ETCG vs. SMST - Yearly Performance Comparison

	2026 (YTD)	2025	2024
ETCG Grayscale Ethereum Classic Trust (ETC)	-38.98%	-39.78%	7.38%
SMST Defiance Daily Target 2X Short MSTR ETF	-36.56%	-44.36%	-91.71%

Correlation

The correlation between ETCG and SMST is -0.55, 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	-0.55
Correlation (All Time) Calculated using the full available price history since Aug 21, 2024	-0.54

The correlation between ETCG and SMST has been stable across timeframes, ranging from -0.55 to -0.54 - a consistent structural relationship.

Return for Risk

ETCG vs. SMST — Risk / Return Rank

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

ETCG

ETCG Risk / Return Rank: 2
ETCG Sharpe Ratio Rank: 2
ETCG Sortino Ratio Rank: 1
ETCG Omega Ratio Rank: 2
ETCG Calmar Ratio Rank: 2
ETCG Martin Ratio Rank: 3

SMST

SMST Risk / Return Rank: 53
SMST Sharpe Ratio Rank: 50
SMST Sortino Ratio Rank: 57
SMST Omega Ratio Rank: 58
SMST Calmar Ratio Rank: 62
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.

ETCG vs. SMST - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Grayscale Ethereum Classic Trust (ETC) (ETCG) 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.

	ETCG	SMST	Difference
Sharpe ratio: Return per unit of total volatility	-0.96	1.44	-2.40
Sortino ratio: Return per unit of downside risk	-1.74	2.25	-3.99
Omega ratio: Gain probability vs. loss probability	0.82	1.29	-0.47
Calmar ratio: Return relative to maximum drawdown	-0.86	2.52	-3.37
Martin ratio: Return relative to average drawdown	-1.21	4.83	-6.04

ETCG vs. SMST - Sharpe Ratio Comparison

The current ETCG Sharpe Ratio is -0.96, which is lower than the SMST Sharpe Ratio of 1.44. The chart below compares the historical Sharpe Ratios of ETCG 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

ETCG vs. SMST - Drawdown Comparison

The maximum ETCG drawdown since its inception was -96.59%, roughly equal to the maximum SMST drawdown of -99.25%. Use the drawdown chart below to compare losses from any high point for ETCG and SMST.

Drawdown Indicators

	ETCG	SMST	Difference
Max Drawdown Largest peak-to-trough decline	-96.59%	-99.25%	+2.66%
Max Drawdown (1Y) Largest decline over 1 year	-69.23%	-85.39%	+16.16%
Max Drawdown (3Y) Largest decline over 3 years	-79.93%	—	—
Max Drawdown (5Y) Largest decline over 5 years	-92.70%	—	—
Current Drawdown Current decline from peak	-95.59%	-97.51%	+1.92%
Average Drawdown Average peak-to-trough decline	-82.80%	-90.92%	+8.12%
Ulcer Index Depth and duration of drawdowns from previous peaks	48.94%	44.41%	+4.53%

Volatility

ETCG vs. SMST - Volatility Comparison

The current volatility for Grayscale Ethereum Classic Trust (ETC) (ETCG) is 11.22%, while Defiance Daily Target 2X Short MSTR ETF (SMST) has a volatility of 56.99%. This indicates that ETCG 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

	ETCG	SMST	Difference
Volatility (1M) Calculated over the trailing 1-month period	11.22%	56.99%	-45.77%
Volatility (6M) Calculated over the trailing 6-month period	36.23%	135.90%	-99.67%
Volatility (1Y) Calculated over the trailing 1-year period	61.68%	149.26%	-87.58%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	91.85%	167.61%	-75.76%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	114.62%	167.61%	-52.99%

ETCG vs. SMST - Expense Ratio Comparison

ETCG has a 2.50% expense ratio, which is higher than SMST's 1.29% expense ratio.

Dividends

ETCG vs. SMST - Dividend Comparison

Neither ETCG nor SMST has paid dividends to shareholders.

Tickers have no history of dividend payments

Frequently Asked Questions

Can I hold both ETCG and SMST in my portfolio?

ETCG and SMST have a correlation of -0.55, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, ETCG or SMST?

SMST has higher volatility (56.99%) compared to ETCG (11.22%). In terms of maximum drawdown, ETCG dropped -96.59% vs SMST's -99.25%.

Which ETF is better, ETCG or SMST?

On 1-year performance, SMST leads with 213.47% vs -59.15% for ETCG. On fees, SMST is cheaper at 1.29% per year. On volatility, ETCG has been the lower-risk option at 11.22%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, ETCG or SMST?

Over the 1-year period, SMST has performed better with a 213.47% return vs -59.15%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, ETCG or SMST?

SMST is cheaper with a 1.29% expense ratio, compared with 2.50% for ETCG.

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

ETCG and SMST have nearly identical dividend yields, around 0.00%.

What is the main difference between ETCG and SMST?

ETCG is categorized as Cryptocurrency, while SMST is Inverse Equities. They also come from different issuers: Grayscale and Defiance. Their fees differ too: 2.50% for ETCG and 1.29% for SMST.

Which has better risk-adjusted returns?

SMST currently has the higher Sharpe Ratio (1.44 vs -0.96), 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.