FLSA vs. SMST

Last updated Jun 26, 2026

FLSA (Franklin FTSE Saudi Arabia ETF) and SMST (Defiance Daily Target 2X Short MSTR ETF) are both exchange-traded funds - FLSA is a Emerging Markets Equities fund tracking the FTSE Saudi Arabia RIC Capped Index, while SMST is a Inverse Equities fund actively managed by Defiance. FLSA is passively managed, while SMST is actively managed. Over the past year, FLSA returned 3.43% vs 236.89% for SMST. At a correlation of -0.25, they often move in opposite directions. FLSA charges 0.39%/yr vs 1.29%/yr for SMST.

Performance

FLSA vs. SMST - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Franklin FTSE Saudi Arabia ETF (FLSA) 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, FLSA achieves a 5.36% return, which is significantly higher than SMST's -5.14% return.

FLSA

• 1D: -0.70%
• 1M: -0.90%
• YTD: 5.36%
• 6M: 4.75%
• 1Y: 3.43%
• 3Y*: 0.49%
• 5Y*: 2.49%
• 10Y*: —

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)

FLSA vs. SMST - Yearly Performance Comparison

	2026 (YTD)	2025	2024
FLSA Franklin FTSE Saudi Arabia ETF	5.36%	-7.15%	-0.39%
SMST Defiance Daily Target 2X Short MSTR ETF	-5.14%	-44.36%	-91.71%

Correlation

The correlation between FLSA and SMST is -0.26, 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	-0.26
Correlation (All Time) Calculated using the full available price history since Aug 21, 2024	-0.25

Return for Risk

FLSA vs. SMST — Risk / Return Rank

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

FLSA

FLSA Risk / Return Rank: 12
FLSA Sharpe Ratio Rank: 12
FLSA Sortino Ratio Rank: 11
FLSA Omega Ratio Rank: 11
FLSA Calmar Ratio Rank: 12
FLSA Martin Ratio Rank: 12

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.

FLSA vs. SMST - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Franklin FTSE Saudi Arabia ETF (FLSA) 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.

	FLSA	SMST	Difference
Sharpe ratio: Return per unit of total volatility	0.21	1.63	-1.42
Sortino ratio: Return per unit of downside risk	0.47	2.35	-1.88
Omega ratio: Gain probability vs. loss probability	1.05	1.30	-0.25
Calmar ratio: Return relative to maximum drawdown	0.30	2.79	-2.49
Martin ratio: Return relative to average drawdown	0.67	5.52	-4.85

FLSA vs. SMST - Sharpe Ratio Comparison

The current FLSA Sharpe Ratio is 0.21, which is lower than the SMST Sharpe Ratio of 1.63. The chart below compares the historical Sharpe Ratios of FLSA 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

FLSA vs. SMST - Drawdown Comparison

The maximum FLSA drawdown since its inception was -38.31%, smaller than the maximum SMST drawdown of -99.25%. Use the drawdown chart below to compare losses from any high point for FLSA and SMST.

Drawdown Indicators

	FLSA	SMST	Difference
Max Drawdown Largest peak-to-trough decline	-38.31%	-99.25%	+60.94%
Max Drawdown (1Y) Largest decline over 1 year	-11.30%	-85.39%	+74.09%
Max Drawdown (3Y) Largest decline over 3 years	-14.95%	—	—
Max Drawdown (5Y) Largest decline over 5 years	-27.25%	—	—
Current Drawdown Current decline from peak	-15.60%	-96.27%	+80.67%
Average Drawdown Average peak-to-trough decline	-12.21%	-90.74%	+78.53%
Ulcer Index Depth and duration of drawdowns from previous peaks	5.15%	43.15%	-38.00%

Volatility

FLSA vs. SMST - Volatility Comparison

The current volatility for Franklin FTSE Saudi Arabia ETF (FLSA) is 4.91%, while Defiance Daily Target 2X Short MSTR ETF (SMST) has a volatility of 46.13%. This indicates that FLSA 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

	FLSA	SMST	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.91%	46.13%	-41.22%
Volatility (6M) Calculated over the trailing 6-month period	12.47%	130.40%	-117.93%
Volatility (1Y) Calculated over the trailing 1-year period	16.27%	146.32%	-130.05%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	15.80%	167.25%	-151.45%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	19.38%	167.25%	-147.87%

FLSA vs. SMST - Expense Ratio Comparison

FLSA has a 0.39% expense ratio, which is lower than SMST's 1.29% expense ratio.

Dividends

FLSA vs. SMST - Dividend Comparison

FLSA's dividend yield for the trailing twelve months is around 1.23%, while SMST has not paid dividends to shareholders.

Position	TTM	2025	2024	2023	2022	2021	2020	2019
FLSA Franklin FTSE Saudi Arabia ETF	1.23%	4.01%	3.01%	3.09%	1.90%	1.95%	2.16%	3.18%
SMST Defiance Daily Target 2X Short MSTR ETF	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both FLSA and SMST in my portfolio?

FLSA and SMST have a correlation of -0.26, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, FLSA or SMST?

SMST has higher volatility (46.13%) compared to FLSA (4.91%). In terms of maximum drawdown, FLSA dropped -38.31% vs SMST's -99.25%.

Which ETF is better, FLSA or SMST?

On 1-year performance, SMST leads with 236.89% vs 3.43% for FLSA. On fees, FLSA is cheaper at 0.39% per year. On volatility, FLSA has been the lower-risk option at 4.91%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, FLSA or SMST?

Over the 1-year period, SMST has performed better with a 236.89% return vs 3.43%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, FLSA or SMST?

FLSA is cheaper with a 0.39% expense ratio, compared with 1.29% for SMST.

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

FLSA has the higher dividend yield at 1.23%, compared with 0.00% for SMST.

What is the main difference between FLSA and SMST?

FLSA is categorized as Emerging Markets Equities, while SMST is Inverse Equities. They also come from different issuers: Franklin Templeton and Defiance. Their fees differ too: 0.39% for FLSA and 1.29% for SMST.

Which has better risk-adjusted returns?

SMST currently has the higher Sharpe Ratio (1.63 vs 0.21), 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.