FMDE vs. SMST

Last updated Jun 26, 2026

FMDE (Fidelity Enhanced Mid Cap ETF) and SMST (Defiance Daily Target 2X Short MSTR ETF) are both exchange-traded funds - FMDE is a Mid Cap Blend Equities fund actively managed by Fidelity, while SMST is a Inverse Equities fund actively managed by Defiance. Both are actively managed. Over the past year, FMDE returned 21.70% vs 236.89% for SMST. At a correlation of -0.44, they often move in opposite directions. FMDE charges 0.23%/yr vs 1.29%/yr for SMST.

Performance

FMDE vs. SMST - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Fidelity Enhanced Mid Cap ETF (FMDE) 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, FMDE achieves a 12.03% return, which is significantly higher than SMST's -5.14% return.

FMDE

• 1D: 1.05%
• 1M: 2.75%
• YTD: 12.03%
• 6M: 10.48%
• 1Y: 21.70%
• 3Y*: —
• 5Y*: —
• 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)

FMDE vs. SMST - Yearly Performance Comparison

	2026 (YTD)	2025	2024
FMDE Fidelity Enhanced Mid Cap ETF	12.03%	12.19%	8.25%
SMST Defiance Daily Target 2X Short MSTR ETF	-5.14%	-44.36%	-91.71%

Correlation

The correlation between FMDE and SMST is -0.42, 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	-0.42
Correlation (All Time) Calculated using the full available price history since Aug 21, 2024	-0.44

Return for Risk

FMDE vs. SMST — Risk / Return Rank

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

FMDE

FMDE Risk / Return Rank: 56
FMDE Sharpe Ratio Rank: 53
FMDE Sortino Ratio Rank: 53
FMDE Omega Ratio Rank: 49
FMDE Calmar Ratio Rank: 61
FMDE Martin Ratio Rank: 65

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.

FMDE vs. SMST - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Fidelity Enhanced Mid Cap ETF (FMDE) 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.

	FMDE	SMST	Difference
Sharpe ratio: Return per unit of total volatility	1.57	1.63	-0.06
Sortino ratio: Return per unit of downside risk	2.25	2.35	-0.11
Omega ratio: Gain probability vs. loss probability	1.27	1.30	-0.03
Calmar ratio: Return relative to maximum drawdown	2.62	2.79	-0.18
Martin ratio: Return relative to average drawdown	10.26	5.52	+4.74

FMDE vs. SMST - Sharpe Ratio Comparison

The current FMDE Sharpe Ratio is 1.57, which is comparable to the SMST Sharpe Ratio of 1.63. The chart below compares the historical Sharpe Ratios of FMDE 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

FMDE vs. SMST - Drawdown Comparison

The maximum FMDE drawdown since its inception was -21.10%, smaller than the maximum SMST drawdown of -99.25%. Use the drawdown chart below to compare losses from any high point for FMDE and SMST.

Drawdown Indicators

	FMDE	SMST	Difference
Max Drawdown Largest peak-to-trough decline	-21.10%	-99.25%	+78.15%
Max Drawdown (1Y) Largest decline over 1 year	-8.33%	-85.39%	+77.06%
Current Drawdown Current decline from peak	0.00%	-96.27%	+96.27%
Average Drawdown Average peak-to-trough decline	-2.61%	-90.74%	+88.13%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.12%	43.15%	-41.03%

Volatility

FMDE vs. SMST - Volatility Comparison

The current volatility for Fidelity Enhanced Mid Cap ETF (FMDE) is 4.57%, while Defiance Daily Target 2X Short MSTR ETF (SMST) has a volatility of 46.13%. This indicates that FMDE 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

	FMDE	SMST	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.57%	46.13%	-41.56%
Volatility (6M) Calculated over the trailing 6-month period	10.52%	130.40%	-119.88%
Volatility (1Y) Calculated over the trailing 1-year period	13.95%	146.32%	-132.37%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	16.16%	167.25%	-151.09%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	16.16%	167.25%	-151.09%

FMDE vs. SMST - Expense Ratio Comparison

FMDE has a 0.23% expense ratio, which is lower than SMST's 1.29% expense ratio.

Dividends

FMDE vs. SMST - Dividend Comparison

FMDE's dividend yield for the trailing twelve months is around 1.08%, while SMST has not paid dividends to shareholders.

Position	TTM	2025	2024	2023
FMDE Fidelity Enhanced Mid Cap ETF	1.08%	1.23%	1.11%	0.10%
SMST Defiance Daily Target 2X Short MSTR ETF	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both FMDE and SMST in my portfolio?

FMDE and SMST have a correlation of -0.42, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, FMDE or SMST?

SMST has higher volatility (46.13%) compared to FMDE (4.57%). In terms of maximum drawdown, FMDE dropped -21.10% vs SMST's -99.25%.

Which ETF is better, FMDE or SMST?

On 1-year performance, SMST leads with 236.89% vs 21.70% for FMDE. On fees, FMDE is cheaper at 0.23% per year. On volatility, FMDE has been the lower-risk option at 4.57%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, FMDE or SMST?

Over the 1-year period, SMST has performed better with a 236.89% return vs 21.70%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, FMDE or SMST?

FMDE is cheaper with a 0.23% expense ratio, compared with 1.29% for SMST.

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

FMDE has the higher dividend yield at 1.08%, compared with 0.00% for SMST.

What is the main difference between FMDE and SMST?

FMDE is categorized as Mid Cap Blend Equities, while SMST is Inverse Equities. They also come from different issuers: Fidelity and Defiance. Their fees differ too: 0.23% for FMDE and 1.29% for SMST.

Which has better risk-adjusted returns?

SMST currently has the higher Sharpe Ratio (1.63 vs 1.57), 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.