HECO vs. SMST

Last updated Jun 26, 2026

HECO (State Street Galaxy Hedged Digital Asset Ecosystem ETF) and SMST (Defiance Daily Target 2X Short MSTR ETF) are both exchange-traded funds - HECO is a Blockchain fund actively managed by State Street, while SMST is a Inverse Equities fund actively managed by Defiance. Both are actively managed. Over the past year, HECO returned 121.05% vs 236.89% for SMST. At a correlation of -0.66, they often move in opposite directions. HECO charges 0.90%/yr vs 1.29%/yr for SMST.

Performance

HECO vs. SMST - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in State Street Galaxy Hedged Digital Asset Ecosystem ETF (HECO) 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, HECO achieves a 68.70% return, which is significantly higher than SMST's -5.14% return.

HECO

• 1D: -0.20%
• 1M: 6.32%
• YTD: 68.70%
• 6M: 60.62%
• 1Y: 121.05%
• 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)

HECO vs. SMST - Yearly Performance Comparison

	2026 (YTD)	2025	2024
HECO State Street Galaxy Hedged Digital Asset Ecosystem ETF	68.70%	26.23%	28.95%
SMST Defiance Daily Target 2X Short MSTR ETF	-5.14%	-44.36%	-91.78%

Correlation

The correlation between HECO and SMST is -0.66, 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	-0.66
Correlation (All Time) Calculated using the full available price history since Sep 10, 2024	-0.66

The correlation between HECO and SMST has been stable across timeframes, ranging from -0.66 to -0.66 - a consistent structural relationship.

Return for Risk

HECO vs. SMST — Risk / Return Rank

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

HECO

HECO Risk / Return Rank: 91
HECO Sharpe Ratio Rank: 95
HECO Sortino Ratio Rank: 90
HECO Omega Ratio Rank: 87
HECO Calmar Ratio Rank: 93
HECO Martin Ratio Rank: 87

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.

HECO vs. SMST - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for State Street Galaxy Hedged Digital Asset Ecosystem ETF (HECO) 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.

	HECO	SMST	Difference
Sharpe ratio: Return per unit of total volatility	3.25	1.63	+1.62
Sortino ratio: Return per unit of downside risk	3.70	2.35	+1.35
Omega ratio: Gain probability vs. loss probability	1.47	1.30	+0.17
Calmar ratio: Return relative to maximum drawdown	5.79	2.79	+3.00
Martin ratio: Return relative to average drawdown	16.52	5.52	+11.01

HECO vs. SMST - Sharpe Ratio Comparison

The current HECO Sharpe Ratio is 3.25, which is higher than the SMST Sharpe Ratio of 1.63. The chart below compares the historical Sharpe Ratios of HECO 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

HECO vs. SMST - Drawdown Comparison

The maximum HECO drawdown since its inception was -44.59%, smaller than the maximum SMST drawdown of -99.25%. Use the drawdown chart below to compare losses from any high point for HECO and SMST.

Drawdown Indicators

	HECO	SMST	Difference
Max Drawdown Largest peak-to-trough decline	-44.59%	-99.25%	+54.66%
Max Drawdown (1Y) Largest decline over 1 year	-21.03%	-85.39%	+64.36%
Current Drawdown Current decline from peak	-3.72%	-96.27%	+92.55%
Average Drawdown Average peak-to-trough decline	-11.50%	-90.74%	+79.24%
Ulcer Index Depth and duration of drawdowns from previous peaks	7.35%	43.15%	-35.80%

Volatility

HECO vs. SMST - Volatility Comparison

The current volatility for State Street Galaxy Hedged Digital Asset Ecosystem ETF (HECO) is 10.14%, while Defiance Daily Target 2X Short MSTR ETF (SMST) has a volatility of 46.13%. This indicates that HECO 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

	HECO	SMST	Difference
Volatility (1M) Calculated over the trailing 1-month period	10.14%	46.13%	-35.99%
Volatility (6M) Calculated over the trailing 6-month period	28.72%	130.40%	-101.68%
Volatility (1Y) Calculated over the trailing 1-year period	37.41%	146.32%	-108.91%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	44.62%	167.25%	-122.63%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	44.62%	167.25%	-122.63%

HECO vs. SMST - Expense Ratio Comparison

HECO has a 0.90% expense ratio, which is lower than SMST's 1.29% expense ratio.

Dividends

HECO vs. SMST - Dividend Comparison

Neither HECO nor SMST has paid dividends to shareholders.

Position	TTM	2025	2024
HECO State Street Galaxy Hedged Digital Asset Ecosystem ETF	0.00%	0.00%	2.61%
SMST Defiance Daily Target 2X Short MSTR ETF	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both HECO and SMST in my portfolio?

HECO and SMST have a correlation of -0.66, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, HECO or SMST?

SMST has higher volatility (46.13%) compared to HECO (10.14%). In terms of maximum drawdown, HECO dropped -44.59% vs SMST's -99.25%.

Which ETF is better, HECO or SMST?

On 1-year performance, SMST leads with 236.89% vs 121.05% for HECO. On fees, HECO is cheaper at 0.90% per year. On volatility, HECO has been the lower-risk option at 10.14%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, HECO or SMST?

Over the 1-year period, SMST has performed better with a 236.89% return vs 121.05%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, HECO or SMST?

HECO is cheaper with a 0.90% expense ratio, compared with 1.29% for SMST.

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

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

What is the main difference between HECO and SMST?

HECO is categorized as Blockchain, while SMST is Inverse Equities. They also come from different issuers: State Street and Defiance. Their fees differ too: 0.90% for HECO and 1.29% for SMST.

Which has better risk-adjusted returns?

HECO currently has the higher Sharpe Ratio (3.25 vs 1.63), 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.