ETH vs. SMST

Last updated Jul 15, 2026

ETH (Grayscale Ethereum Staking Mini ETF) and SMST (Defiance Daily Target 2X Short MSTR ETF) are both exchange-traded funds - ETH is a Cryptocurrency fund actively managed by Grayscale, while SMST is a Inverse Equities fund actively managed by Defiance. Both are actively managed. Over the past year, ETH returned -36.80% vs 223.39% for SMST. At a correlation of -0.68, they often move in opposite directions. ETH charges 0.15%/yr vs 1.29%/yr for SMST.

Performance

ETH vs. SMST - Performance Comparison

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

Returns By Period

The year-to-date returns for both stocks are quite close, with ETH having a -36.28% return and SMST slightly lower at -36.68%.

ETH

• 1D: 5.86%
• 1M: 12.95%
• 6M: -40.97%
• YTD: -36.28%
• 1Y: -36.80%
• 3Y*: —
• 5Y*: —
• 10Y*: —

SMST

• 1D: -12.10%
• 1M: 26.91%
• 6M: -13.52%
• YTD: -36.68%
• 1Y: 223.39%
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

ETH vs. SMST - Yearly Performance Comparison

	2026 (YTD)	2025	2024
ETH Grayscale Ethereum Staking Mini ETF	-36.28%	-10.89%	28.01%
SMST Defiance Daily Target 2X Short MSTR ETF	-36.68%	-44.36%	-91.71%

Correlation

The correlation between ETH and SMST is -0.78, 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	-0.78
Correlation (All Time) Calculated using the full available price history since Aug 21, 2024	-0.68

The correlation between ETH and SMST has been stable across timeframes, ranging from -0.78 to -0.68 - a consistent structural relationship.

Return for Risk

ETH vs. SMST — Risk / Return Rank

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

ETH

ETH Risk / Return Rank: 5
ETH Sharpe Ratio Rank: 5
ETH Sortino Ratio Rank: 5
ETH Omega Ratio Rank: 5
ETH Calmar Ratio Rank: 5
ETH Martin Ratio Rank: 5

SMST

SMST Risk / Return Rank: 56
SMST Sharpe Ratio Rank: 55
SMST Sortino Ratio Rank: 60
SMST Omega Ratio Rank: 61
SMST Calmar Ratio Rank: 66
SMST Martin Ratio Rank: 40

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.

ETH vs. SMST - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Grayscale Ethereum Staking Mini ETF (ETH) 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.

	ETH	SMST	Difference
Sharpe ratio: Return per unit of total volatility	-0.54	1.51	-2.05
Sortino ratio: Return per unit of downside risk	-0.47	2.28	-2.75
Omega ratio: Gain probability vs. loss probability	0.95	1.30	-0.35
Calmar ratio: Return relative to maximum drawdown	-0.55	2.63	-3.18
Martin ratio: Return relative to average drawdown	-0.86	5.07	-5.93

ETH vs. SMST - Sharpe Ratio Comparison

The current ETH Sharpe Ratio is -0.54, which is lower than the SMST Sharpe Ratio of 1.51. The chart below compares the historical Sharpe Ratios of ETH 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

ETH vs. SMST - Drawdown Comparison

The maximum ETH drawdown since its inception was -67.52%, smaller than the maximum SMST drawdown of -99.25%. Use the drawdown chart below to compare losses from any high point for ETH and SMST.

Drawdown Indicators

	ETH	SMST	Difference
Max Drawdown Largest peak-to-trough decline	-67.52%	-99.25%	+31.73%
Max Drawdown (1Y) Largest decline over 1 year	-67.52%	-85.39%	+17.87%
Current Drawdown Current decline from peak	-60.76%	-97.51%	+36.75%
Average Drawdown Average peak-to-trough decline	-34.38%	-90.91%	+56.53%
Ulcer Index Depth and duration of drawdowns from previous peaks	42.94%	44.25%	-1.31%

Volatility

ETH vs. SMST - Volatility Comparison

The current volatility for Grayscale Ethereum Staking Mini ETF (ETH) is 16.66%, while Defiance Daily Target 2X Short MSTR ETF (SMST) has a volatility of 57.45%. This indicates that ETH 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

	ETH	SMST	Difference
Volatility (1M) Calculated over the trailing 1-month period	16.66%	57.45%	-40.79%
Volatility (6M) Calculated over the trailing 6-month period	47.38%	136.03%	-88.65%
Volatility (1Y) Calculated over the trailing 1-year period	68.36%	149.51%	-81.15%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	71.90%	167.79%	-95.89%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	71.90%	167.79%	-95.89%

ETH vs. SMST - Expense Ratio Comparison

ETH has a 0.15% expense ratio, which is lower than SMST's 1.29% expense ratio.

Dividends

ETH vs. SMST - Dividend Comparison

Neither ETH nor SMST has paid dividends to shareholders.

Tickers have no history of dividend payments

Frequently Asked Questions

Can I hold both ETH and SMST in my portfolio?

ETH and SMST have a correlation of -0.78, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, ETH or SMST?

SMST has higher volatility (57.45%) compared to ETH (16.66%). In terms of maximum drawdown, ETH dropped -67.52% vs SMST's -99.25%.

Which ETF is better, ETH or SMST?

On 1-year performance, SMST leads with 223.39% vs -36.80% for ETH. On fees, ETH is cheaper at 0.15% per year. On volatility, ETH has been the lower-risk option at 16.66%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, ETH or SMST?

Over the 1-year period, SMST has performed better with a 223.39% return vs -36.80%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, ETH or SMST?

ETH is cheaper with a 0.15% expense ratio, compared with 1.29% for SMST.

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

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

What is the main difference between ETH and SMST?

ETH is categorized as Cryptocurrency, while SMST is Inverse Equities. They also come from different issuers: Grayscale and Defiance. Their fees differ too: 0.15% for ETH and 1.29% for SMST.

Which has better risk-adjusted returns?

SMST currently has the higher Sharpe Ratio (1.51 vs -0.54), 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.