GDLC vs. SMST

Last updated Aug 2, 2026

GDLC (Grayscale CoinDesk Crypto 5 ETF) and SMST (Defiance Daily Target 2X Short MSTR ETF) are both exchange-traded funds - GDLC is a Cryptocurrency fund tracking the CoinDesk 5 Index, while SMST is a Inverse Equities fund actively managed by Defiance. GDLC is passively managed, while SMST is actively managed. Over the past year, GDLC returned -43.01% vs 128.37% for SMST. Their -0.76 correlation means they have often moved in opposite directions in the past. GDLC charges 0.59%/yr vs 1.29%/yr for SMST.

Performance

GDLC vs. SMST - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Grayscale CoinDesk Crypto 5 ETF (GDLC) 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, GDLC achieves a -31.03% return, which is significantly higher than SMST's -35.77% return.

GDLC

• 1D: -2.56%
• 1M: 2.89%
• 6M: -27.20%
• YTD: -31.03%
• 1Y: -43.01%
• 3Y*: 46.90%
• 5Y*: -0.13%
• 10Y*: —
• ALL TIME*: 20.69%

SMST

• 1D: 8.37%
• 1M: 5.47%
• 6M: -29.35%
• YTD: -35.77%
• 1Y: 128.37%
• 3Y*: —
• 5Y*: —
• 10Y*: —
• ALL TIME*: -83.68%

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

Liquidity Comparison

Position	Avg. Volume Value (2W)	Avg. Volume Value (1M)	Avg. Volume Value (3M)
GDLC Grayscale CoinDesk Crypto 5 ETF	$1.03M	$1.29M	$1.41M
SMST Defiance Daily Target 2X Short MSTR ETF	$15.35M	$15.12M	$17.58M

GDLC vs. SMST - Yearly Performance Comparison

	2026 (YTD)	2025	2024
GDLC Grayscale CoinDesk Crypto 5 ETF	-31.03%	0.45%	110.65%
SMST Defiance Daily Target 2X Short MSTR ETF	-35.77%	-44.36%	-91.71%

Correlation

The correlation between GDLC and SMST is -0.83, meaning they have often moved in opposite directions in the past. This relationship can weaken or reverse as market conditions change.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	-0.83
Correlation (All Time) Calculated using the full available price history since Aug 21, 2024	-0.76

The correlation between GDLC and SMST has been stable across timeframes, ranging from -0.83 to -0.76 - a consistent structural relationship.

Return for Risk

GDLC vs. SMST — Risk / Return Rank

Compare historical risk-adjusted metric ranks over the past 12 months.

GDLC

GDLC Risk / Return Rank: 2
GDLC Sharpe Ratio Rank: 2
GDLC Sortino Ratio Rank: 2
GDLC Omega Ratio Rank: 2
GDLC Calmar Ratio Rank: 3
GDLC Martin Ratio Rank: 3

SMST

SMST Risk / Return Rank: 52
SMST Sharpe Ratio Rank: 45
SMST Sortino Ratio Rank: 62
SMST Omega Ratio Rank: 61
SMST Calmar Ratio Rank: 56
SMST Martin Ratio Rank: 36

The rank (0–100) uses a weighted average of the Sharpe, Sortino, Omega, Calmar, and Martin percentile ranks for the trailing 12 months. Higher means stronger historical risk-adjusted performance within the peer group.

GDLC vs. SMST - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Grayscale CoinDesk Crypto 5 ETF (GDLC) 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.

	GDLC	SMST	Difference
Sharpe ratio: Return per unit of total volatility	-0.93	1.13	-2.06
Sortino ratio: Return per unit of downside risk	-1.36	2.09	-3.45
Omega ratio: Gain probability vs. loss probability	0.85	1.27	-0.42
Calmar ratio: Return relative to maximum drawdown	-0.80	2.00	-2.80
Martin ratio: Return relative to average drawdown	-1.21	3.68	-4.89

GDLC vs. SMST - Sharpe Ratio Comparison

The current GDLC Sharpe Ratio is -0.93, which is lower than the SMST Sharpe Ratio of 1.13. The chart below compares the historical Sharpe Ratios of GDLC 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

GDLC vs. SMST - Drawdown Comparison

The maximum GDLC drawdown since its inception was -94.14%, smaller than the maximum SMST drawdown of -99.25%. Use the drawdown chart below to compare losses from any high point for GDLC and SMST.

Drawdown Indicators

	GDLC	SMST	Difference
Max Drawdown Largest peak-to-trough decline	-94.14%	-99.25%	+5.11%
Max Drawdown (1Y) Largest decline over 1 year	-57.18%	-85.39%	+28.21%
Max Drawdown (3Y) Largest decline over 3 years	-57.18%	—	—
Max Drawdown (5Y) Largest decline over 5 years	-94.14%	—	—
Current Drawdown Current decline from peak	-55.64%	-97.48%	+41.84%
Average Drawdown Average peak-to-trough decline	-52.83%	-91.08%	+38.25%
Ulcer Index Depth and duration of drawdowns from previous peaks	37.73%	46.35%	-8.62%

Volatility

GDLC vs. SMST - Volatility Comparison

The current volatility for Grayscale CoinDesk Crypto 5 ETF (GDLC) is 9.63%, while Defiance Daily Target 2X Short MSTR ETF (SMST) has a volatility of 38.14%. This indicates that GDLC 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

	GDLC	SMST	Difference
Volatility (1M) Calculated over the trailing 1-month period	9.63%	38.14%	-28.51%
Volatility (6M) Calculated over the trailing 6-month period	35.59%	135.29%	-99.70%
Volatility (1Y) Calculated over the trailing 1-year period	49.13%	151.04%	-101.91%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	71.87%	166.75%	-94.88%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	93.52%	166.75%	-73.23%

GDLC vs. SMST - Expense Ratio Comparison

GDLC has a 0.59% expense ratio, which is lower than SMST's 1.29% expense ratio.

Dividends

GDLC vs. SMST - Dividend Comparison

Neither GDLC nor SMST has paid dividends to shareholders.

Tickers have no history of dividend payments

Frequently Asked Questions

Can I hold both GDLC and SMST in my portfolio?

GDLC and SMST have a correlation of -0.83, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, GDLC or SMST?

SMST has higher volatility (38.14%) compared to GDLC (9.63%). In terms of maximum drawdown, GDLC dropped -94.14% vs SMST's -99.25%.

Which ETF is better, GDLC or SMST?

On 1-year performance, SMST leads with 128.37% vs -43.01% for GDLC. On fees, GDLC is cheaper at 0.59% per year. On volatility, GDLC has been the lower-risk option at 9.63%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, GDLC or SMST?

Over the 1-year period, SMST has performed better with a 128.37% return vs -43.01%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, GDLC or SMST?

GDLC is cheaper with a 0.59% expense ratio, compared with 1.29% for SMST.

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

GDLC and SMST have nearly identical dividend yields, around 0.00%.

What is the main difference between GDLC and SMST?

GDLC is categorized as Cryptocurrency, while SMST is Inverse Equities. They also come from different issuers: Grayscale and Defiance. Their fees differ too: 0.59% for GDLC and 1.29% for SMST.

Which has better risk-adjusted returns?

SMST currently has the higher Sharpe Ratio (1.13 vs -0.93), 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.