ETHU vs. SMST

Last updated Jul 17, 2026

ETHU (Volatility Shares 2x Ether ETF) and SMST (Defiance Daily Target 2X Short MSTR ETF) are both exchange-traded funds - ETHU is a Leveraged Cryptocurrency fund actively managed by Volatility Shares, while SMST is a Inverse Equities fund actively managed by Defiance. Both are actively managed. Over the past year, ETHU returned -83.75% vs 257.89% for SMST. At a correlation of -0.69, they often move in opposite directions. ETHU charges 2.67%/yr vs 1.29%/yr for SMST.

Performance

ETHU vs. SMST - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Volatility Shares 2x Ether ETF (ETHU) 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, ETHU achieves a -70.73% return, which is significantly lower than SMST's -31.71% return.

ETHU

• 1D: -4.90%
• 1M: 6.30%
• 6M: -75.69%
• YTD: -70.73%
• 1Y: -83.75%
• 3Y*: —
• 5Y*: —
• 10Y*: —

SMST

• 1D: 7.64%
• 1M: 37.45%
• 6M: -8.12%
• YTD: -31.71%
• 1Y: 257.89%
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

ETHU vs. SMST - Yearly Performance Comparison

	2026 (YTD)	2025	2024
ETHU Volatility Shares 2x Ether ETF	-70.73%	-64.38%	28.74%
SMST Defiance Daily Target 2X Short MSTR ETF	-31.71%	-44.36%	-91.71%

Correlation

The correlation between ETHU 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	-0.69

The correlation between ETHU and SMST has been stable across timeframes, ranging from -0.78 to -0.69 - a consistent structural relationship.

Return for Risk

ETHU vs. SMST — Risk / Return Rank

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

ETHU

ETHU Risk / Return Rank: 3
ETHU Sharpe Ratio Rank: 4
ETHU Sortino Ratio Rank: 4
ETHU Omega Ratio Rank: 4
ETHU Calmar Ratio Rank: 1
ETHU Martin Ratio Rank: 3

SMST

SMST Risk / Return Rank: 63
SMST Sharpe Ratio Rank: 67
SMST Sortino Ratio Rank: 64
SMST Omega Ratio Rank: 64
SMST Calmar Ratio Rank: 75
SMST Martin Ratio Rank: 44

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.

ETHU vs. SMST - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Volatility Shares 2x Ether ETF (ETHU) 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.

	ETHU	SMST	Difference
Sharpe ratio: Return per unit of total volatility	-0.62	1.74	-2.36
Sortino ratio: Return per unit of downside risk	-0.91	2.38	-3.29
Omega ratio: Gain probability vs. loss probability	0.90	1.31	-0.41
Calmar ratio: Return relative to maximum drawdown	-0.89	3.04	-3.93
Martin ratio: Return relative to average drawdown	-1.20	5.82	-7.02

ETHU vs. SMST - Sharpe Ratio Comparison

The current ETHU Sharpe Ratio is -0.62, which is lower than the SMST Sharpe Ratio of 1.74. The chart below compares the historical Sharpe Ratios of ETHU 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

ETHU vs. SMST - Drawdown Comparison

The maximum ETHU drawdown since its inception was -96.46%, roughly equal to the maximum SMST drawdown of -99.25%. Use the drawdown chart below to compare losses from any high point for ETHU and SMST.

Drawdown Indicators

	ETHU	SMST	Difference
Max Drawdown Largest peak-to-trough decline	-96.46%	-99.25%	+2.79%
Max Drawdown (1Y) Largest decline over 1 year	-93.99%	-85.39%	-8.60%
Current Drawdown Current decline from peak	-94.93%	-97.32%	+2.39%
Average Drawdown Average peak-to-trough decline	-70.71%	-90.93%	+20.22%
Ulcer Index Depth and duration of drawdowns from previous peaks	69.54%	44.56%	+24.98%

Volatility

ETHU vs. SMST - Volatility Comparison

The current volatility for Volatility Shares 2x Ether ETF (ETHU) is 29.02%, while Defiance Daily Target 2X Short MSTR ETF (SMST) has a volatility of 55.38%. This indicates that ETHU 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

	ETHU	SMST	Difference
Volatility (1M) Calculated over the trailing 1-month period	29.02%	55.38%	-26.36%
Volatility (6M) Calculated over the trailing 6-month period	96.55%	135.32%	-38.77%
Volatility (1Y) Calculated over the trailing 1-year period	137.64%	149.40%	-11.76%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	142.25%	167.53%	-25.28%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	142.25%	167.53%	-25.28%

ETHU vs. SMST - Expense Ratio Comparison

ETHU has a 2.67% expense ratio, which is higher than SMST's 1.29% expense ratio.

Dividends

ETHU vs. SMST - Dividend Comparison

ETHU's dividend yield for the trailing twelve months is around 4.83%, while SMST has not paid dividends to shareholders.

Position	TTM	2025	2024
ETHU Volatility Shares 2x Ether ETF	4.83%	2.31%	0.41%
SMST Defiance Daily Target 2X Short MSTR ETF	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both ETHU and SMST in my portfolio?

ETHU 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, ETHU or SMST?

SMST has higher volatility (55.38%) compared to ETHU (29.02%). In terms of maximum drawdown, ETHU dropped -96.46% vs SMST's -99.25%.

Which ETF is better, ETHU or SMST?

On 1-year performance, SMST leads with 257.89% vs -83.75% for ETHU. On fees, SMST is cheaper at 1.29% per year. On volatility, ETHU has been the lower-risk option at 29.02%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, ETHU or SMST?

Over the 1-year period, SMST has performed better with a 257.89% return vs -83.75%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, ETHU or SMST?

SMST is cheaper with a 1.29% expense ratio, compared with 2.67% for ETHU.

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

ETHU has the higher dividend yield at 4.83%, compared with 0.00% for SMST.

What is the main difference between ETHU and SMST?

ETHU is categorized as Leveraged Cryptocurrency, while SMST is Inverse Equities. They also come from different issuers: Volatility Shares and Defiance. Their fees differ too: 2.67% for ETHU and 1.29% for SMST.

Which has better risk-adjusted returns?

SMST currently has the higher Sharpe Ratio (1.74 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.