ETHE vs. SMST

Last updated Jul 14, 2026

ETHE (Grayscale Ethereum Trust ETF) and SMST (Defiance Daily Target 2X Short MSTR ETF) are both exchange-traded funds - ETHE is a Cryptocurrency fund tracking the CoinDesk Ether Price Index, while SMST is a Inverse Equities fund actively managed by Defiance. ETHE is passively managed, while SMST is actively managed. Over the past year, ETHE returned -41.93% vs 223.04% for SMST. At a correlation of -0.68, they often move in opposite directions. ETHE charges 2.50%/yr vs 1.29%/yr for SMST.

Performance

ETHE vs. SMST - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Grayscale Ethereum Trust ETF (ETHE) 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, ETHE achieves a -40.62% return, which is significantly lower than SMST's -31.56% return.

ETHE

• 1D: -1.11%
• 1M: 6.40%
• 6M: -43.12%
• YTD: -40.62%
• 1Y: -41.93%
• 3Y*: 8.63%
• 5Y*: -4.71%
• 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)

ETHE vs. SMST - Yearly Performance Comparison

	2026 (YTD)	2025	2024
ETHE Grayscale Ethereum Trust ETF	-40.62%	-13.03%	27.31%
SMST Defiance Daily Target 2X Short MSTR ETF	-31.56%	-44.36%	-91.71%

Correlation

The correlation between ETHE and SMST is -0.77, 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	-0.77
Correlation (All Time) Calculated using the full available price history since Aug 21, 2024	-0.68

The correlation between ETHE and SMST has been stable across timeframes, ranging from -0.77 to -0.68 - a consistent structural relationship.

Return for Risk

ETHE vs. SMST — Risk / Return Rank

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

ETHE

ETHE Risk / Return Rank: 4
ETHE Sharpe Ratio Rank: 4
ETHE Sortino Ratio Rank: 5
ETHE Omega Ratio Rank: 5
ETHE Calmar Ratio Rank: 4
ETHE Martin Ratio Rank: 5

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.

ETHE vs. SMST - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Grayscale Ethereum Trust ETF (ETHE) 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.

	ETHE	SMST	Difference
Sharpe ratio: Return per unit of total volatility	-0.62	1.37	-1.99
Sortino ratio: Return per unit of downside risk	-0.65	2.22	-2.87
Omega ratio: Gain probability vs. loss probability	0.93	1.29	-0.36
Calmar ratio: Return relative to maximum drawdown	-0.62	2.39	-3.01
Martin ratio: Return relative to average drawdown	-0.97	4.64	-5.61

ETHE vs. SMST - Sharpe Ratio Comparison

The current ETHE Sharpe Ratio is -0.62, which is lower than the SMST Sharpe Ratio of 1.37. The chart below compares the historical Sharpe Ratios of ETHE 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

ETHE vs. SMST - Drawdown Comparison

The maximum ETHE drawdown since its inception was -96.26%, roughly equal to the maximum SMST drawdown of -99.25%. Use the drawdown chart below to compare losses from any high point for ETHE and SMST.

Drawdown Indicators

	ETHE	SMST	Difference
Max Drawdown Largest peak-to-trough decline	-96.26%	-99.25%	+2.99%
Max Drawdown (1Y) Largest decline over 1 year	-68.17%	-85.39%	+17.22%
Max Drawdown (3Y) Largest decline over 3 years	-68.17%	—	—
Max Drawdown (5Y) Largest decline over 5 years	-89.85%	—	—
Current Drawdown Current decline from peak	-77.54%	-97.31%	+19.77%
Average Drawdown Average peak-to-trough decline	-72.28%	-90.88%	+18.60%
Ulcer Index Depth and duration of drawdowns from previous peaks	43.30%	43.98%	-0.68%

Volatility

ETHE vs. SMST - Volatility Comparison

The current volatility for Grayscale Ethereum Trust ETF (ETHE) is 16.05%, while Defiance Daily Target 2X Short MSTR ETF (SMST) has a volatility of 56.47%. This indicates that ETHE 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

	ETHE	SMST	Difference
Volatility (1M) Calculated over the trailing 1-month period	16.05%	56.47%	-40.42%
Volatility (6M) Calculated over the trailing 6-month period	46.93%	135.94%	-89.01%
Volatility (1Y) Calculated over the trailing 1-year period	68.14%	149.09%	-80.95%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	81.69%	167.87%	-86.18%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	190.54%	167.87%	+22.67%

ETHE vs. SMST - Expense Ratio Comparison

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

Dividends

ETHE vs. SMST - Dividend Comparison

ETHE's dividend yield for the trailing twelve months is around 1.53%, while SMST has not paid dividends to shareholders.

Position	TTM
ETHE Grayscale Ethereum Trust ETF	1.53%
SMST Defiance Daily Target 2X Short MSTR ETF	0.00%

Frequently Asked Questions

Can I hold both ETHE and SMST in my portfolio?

ETHE and SMST have a correlation of -0.77, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, ETHE or SMST?

SMST has higher volatility (56.47%) compared to ETHE (16.05%). In terms of maximum drawdown, ETHE dropped -96.26% vs SMST's -99.25%.

Which ETF is better, ETHE or SMST?

On 1-year performance, SMST leads with 223.04% vs -41.93% for ETHE. On fees, SMST is cheaper at 1.29% per year. On volatility, ETHE has been the lower-risk option at 16.05%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, ETHE or SMST?

Over the 1-year period, SMST has performed better with a 223.04% return vs -41.93%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, ETHE or SMST?

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

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

ETHE has the higher dividend yield at 1.53%, compared with 0.00% for SMST.

What is the main difference between ETHE and SMST?

ETHE 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 ETHE and 1.29% for SMST.

Which has better risk-adjusted returns?

SMST currently has the higher Sharpe Ratio (1.37 vs -0.62), 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.