FRDM vs. SMST

Last updated Jul 14, 2026

FRDM (Freedom 100 Emerging Markets ETF) and SMST (Defiance Daily Target 2X Short MSTR ETF) are both exchange-traded funds - FRDM is a Emerging Markets Diversified fund tracking the Life + Liberty Freedom 100 Emerging Markets Index, while SMST is a Inverse Equities fund actively managed by Defiance. FRDM is passively managed, while SMST is actively managed. Over the past year, FRDM returned 68.27% vs 240.03% for SMST. At a correlation of -0.35, they often move in opposite directions. FRDM charges 0.49%/yr vs 1.29%/yr for SMST.

Performance

FRDM vs. SMST - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Freedom 100 Emerging Markets ETF (FRDM) 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, FRDM achieves a 30.27% return, which is significantly higher than SMST's -27.96% return.

FRDM

• 1D: -5.10%
• 1M: -7.04%
• 6M: 21.61%
• YTD: 30.27%
• 1Y: 68.27%
• 3Y*: 29.72%
• 5Y*: 17.22%
• 10Y*: —

SMST

• 1D: 5.26%
• 1M: 44.38%
• 6M: -15.07%
• YTD: -27.96%
• 1Y: 240.03%
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

FRDM vs. SMST - Yearly Performance Comparison

	2026 (YTD)	2025	2024
FRDM Freedom 100 Emerging Markets ETF	30.27%	61.27%	-7.81%
SMST Defiance Daily Target 2X Short MSTR ETF	-27.96%	-44.36%	-91.71%

Correlation

The correlation between FRDM and SMST is -0.35, 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	-0.35
Correlation (All Time) Calculated using the full available price history since Aug 21, 2024	-0.35

Return for Risk

FRDM vs. SMST — Risk / Return Rank

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

FRDM

FRDM Risk / Return Rank: 86
FRDM Sharpe Ratio Rank: 89
FRDM Sortino Ratio Rank: 79
FRDM Omega Ratio Rank: 86
FRDM Calmar Ratio Rank: 88
FRDM Martin Ratio Rank: 87

SMST

SMST Risk / Return Rank: 60
SMST Sharpe Ratio Rank: 62
SMST Sortino Ratio Rank: 63
SMST Omega Ratio Rank: 63
SMST Calmar Ratio Rank: 71
SMST Martin Ratio Rank: 43

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.

FRDM vs. SMST - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Freedom 100 Emerging Markets ETF (FRDM) 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.

	FRDM	SMST	Difference
Sharpe ratio: Return per unit of total volatility	2.34	1.62	+0.72
Sortino ratio: Return per unit of downside risk	2.80	2.33	+0.47
Omega ratio: Gain probability vs. loss probability	1.41	1.30	+0.11
Calmar ratio: Return relative to maximum drawdown	4.07	2.83	+1.24
Martin ratio: Return relative to average drawdown	14.53	5.47	+9.06

FRDM vs. SMST - Sharpe Ratio Comparison

The current FRDM Sharpe Ratio is 2.34, which is higher than the SMST Sharpe Ratio of 1.62. The chart below compares the historical Sharpe Ratios of FRDM 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

FRDM vs. SMST - Drawdown Comparison

The maximum FRDM drawdown since its inception was -40.49%, smaller than the maximum SMST drawdown of -99.25%. Use the drawdown chart below to compare losses from any high point for FRDM and SMST.

Drawdown Indicators

	FRDM	SMST	Difference
Max Drawdown Largest peak-to-trough decline	-40.49%	-99.25%	+58.76%
Max Drawdown (1Y) Largest decline over 1 year	-16.87%	-85.39%	+68.52%
Max Drawdown (3Y) Largest decline over 3 years	-16.87%	—	—
Max Drawdown (5Y) Largest decline over 5 years	-29.25%	—	—
Current Drawdown Current decline from peak	-12.71%	-97.17%	+84.46%
Average Drawdown Average peak-to-trough decline	-7.08%	-90.89%	+83.81%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.71%	44.09%	-39.38%

Volatility

FRDM vs. SMST - Volatility Comparison

The current volatility for Freedom 100 Emerging Markets ETF (FRDM) is 14.39%, while Defiance Daily Target 2X Short MSTR ETF (SMST) has a volatility of 56.59%. This indicates that FRDM 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

	FRDM	SMST	Difference
Volatility (1M) Calculated over the trailing 1-month period	14.39%	56.59%	-42.20%
Volatility (6M) Calculated over the trailing 6-month period	27.29%	135.88%	-108.59%
Volatility (1Y) Calculated over the trailing 1-year period	29.38%	149.23%	-119.85%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	22.04%	167.74%	-145.70%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	23.46%	167.74%	-144.28%

FRDM vs. SMST - Expense Ratio Comparison

FRDM has a 0.49% expense ratio, which is lower than SMST's 1.29% expense ratio.

Dividends

FRDM vs. SMST - Dividend Comparison

FRDM's dividend yield for the trailing twelve months is around 1.66%, while SMST has not paid dividends to shareholders.

Position	TTM	2025	2024	2023	2022	2021	2020	2019
FRDM Freedom 100 Emerging Markets ETF	1.66%	2.26%	2.53%	2.66%	2.72%	2.17%	1.11%	1.07%
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 FRDM and SMST in my portfolio?

FRDM and SMST have a correlation of -0.35, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, FRDM or SMST?

SMST has higher volatility (56.59%) compared to FRDM (14.39%). In terms of maximum drawdown, FRDM dropped -40.49% vs SMST's -99.25%.

Which ETF is better, FRDM or SMST?

On 1-year performance, SMST leads with 240.03% vs 68.27% for FRDM. On fees, FRDM is cheaper at 0.49% per year. On volatility, FRDM has been the lower-risk option at 14.39%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, FRDM or SMST?

Over the 1-year period, SMST has performed better with a 240.03% return vs 68.27%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, FRDM or SMST?

FRDM is cheaper with a 0.49% expense ratio, compared with 1.29% for SMST.

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

FRDM has the higher dividend yield at 1.66%, compared with 0.00% for SMST.

What is the main difference between FRDM and SMST?

FRDM is categorized as Emerging Markets Diversified, while SMST is Inverse Equities. They also come from different issuers: Freedom Funds and Defiance. Their fees differ too: 0.49% for FRDM and 1.29% for SMST.

Which has better risk-adjusted returns?

FRDM currently has the higher Sharpe Ratio (2.34 vs 1.62), 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.