HYZD vs. SMST

Last updated Jul 17, 2026

HYZD (WisdomTree Interest Rate Hedged High Yield Bond Fund) and SMST (Defiance Daily Target 2X Short MSTR ETF) are both exchange-traded funds - HYZD is a High Yield Bonds fund tracking the WisdomTree U.S. High Yield Corporate Bond, Zero Duration Index, while SMST is a Inverse Equities fund actively managed by Defiance. HYZD is passively managed, while SMST is actively managed. Over the past year, HYZD returned 7.17% vs 257.89% for SMST. At a correlation of -0.26, they often move in opposite directions. HYZD charges 0.43%/yr vs 1.29%/yr for SMST.

Performance

HYZD vs. SMST - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in WisdomTree Interest Rate Hedged High Yield Bond Fund (HYZD) 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, HYZD achieves a 3.34% return, which is significantly higher than SMST's -31.71% return.

HYZD

• 1D: 0.05%
• 1M: 0.45%
• 6M: 2.66%
• YTD: 3.34%
• 1Y: 7.17%
• 3Y*: 8.67%
• 5Y*: 6.26%
• 10Y*: 5.44%

SMST

• 1D: 7.64%
• 1M: 37.45%
• 6M: -8.12%
• YTD: -31.71%
• 1Y: 257.89%
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

HYZD vs. SMST - Yearly Performance Comparison

	2026 (YTD)	2025	2024
HYZD WisdomTree Interest Rate Hedged High Yield Bond Fund	3.34%	7.67%	3.65%
SMST Defiance Daily Target 2X Short MSTR ETF	-31.71%	-44.36%	-91.71%

Correlation

The correlation between HYZD and SMST is -0.19, 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	-0.19
Correlation (All Time) Calculated using the full available price history since Aug 21, 2024	-0.26

Return for Risk

HYZD vs. SMST — Risk / Return Rank

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

HYZD

HYZD Risk / Return Rank: 90
HYZD Sharpe Ratio Rank: 90
HYZD Sortino Ratio Rank: 93
HYZD Omega Ratio Rank: 92
HYZD Calmar Ratio Rank: 86
HYZD Martin Ratio Rank: 90

SMST

SMST Risk / Return Rank: 63
SMST Sharpe Ratio Rank: 67
SMST Sortino Ratio Rank: 64
SMST Omega Ratio Rank: 64
SMST Calmar Ratio Rank: 75
SMST Martin Ratio Rank: 44

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.

HYZD vs. SMST - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for WisdomTree Interest Rate Hedged High Yield Bond Fund (HYZD) 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.

	HYZD	SMST	Difference
Sharpe ratio: Return per unit of total volatility	2.40	1.74	+0.66
Sortino ratio: Return per unit of downside risk	3.85	2.38	+1.47
Omega ratio: Gain probability vs. loss probability	1.50	1.31	+0.19
Calmar ratio: Return relative to maximum drawdown	3.77	3.04	+0.73
Martin ratio: Return relative to average drawdown	16.25	5.82	+10.43

HYZD vs. SMST - Sharpe Ratio Comparison

The current HYZD Sharpe Ratio is 2.40, which is higher than the SMST Sharpe Ratio of 1.74. The chart below compares the historical Sharpe Ratios of HYZD 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

HYZD vs. SMST - Drawdown Comparison

The maximum HYZD drawdown since its inception was -25.66%, smaller than the maximum SMST drawdown of -99.25%. Use the drawdown chart below to compare losses from any high point for HYZD and SMST.

Drawdown Indicators

	HYZD	SMST	Difference
Max Drawdown Largest peak-to-trough decline	-25.66%	-99.25%	+73.59%
Max Drawdown (1Y) Largest decline over 1 year	-1.91%	-85.39%	+83.48%
Max Drawdown (3Y) Largest decline over 3 years	-5.85%	—	—
Max Drawdown (5Y) Largest decline over 5 years	-8.97%	—	—
Max Drawdown (10Y) Largest decline over 10 years	-25.66%	—	—
Current Drawdown Current decline from peak	0.00%	-97.32%	+97.32%
Average Drawdown Average peak-to-trough decline	-2.18%	-90.93%	+88.75%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.44%	44.56%	-44.12%

Volatility

HYZD vs. SMST - Volatility Comparison

The current volatility for WisdomTree Interest Rate Hedged High Yield Bond Fund (HYZD) is 0.58%, while Defiance Daily Target 2X Short MSTR ETF (SMST) has a volatility of 55.38%. This indicates that HYZD 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

	HYZD	SMST	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.58%	55.38%	-54.80%
Volatility (6M) Calculated over the trailing 6-month period	2.43%	135.32%	-132.89%
Volatility (1Y) Calculated over the trailing 1-year period	3.00%	149.40%	-146.40%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	6.70%	167.53%	-160.83%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	8.52%	167.53%	-159.01%

HYZD vs. SMST - Expense Ratio Comparison

HYZD has a 0.43% expense ratio, which is lower than SMST's 1.29% expense ratio.

Dividends

HYZD vs. SMST - Dividend Comparison

HYZD's dividend yield for the trailing twelve months is around 5.87%, while SMST has not paid dividends to shareholders.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
HYZD WisdomTree Interest Rate Hedged High Yield Bond Fund	5.87%	6.05%	6.08%	5.94%	5.14%	4.02%	5.13%	5.50%	5.58%	4.94%	5.07%	4.38%
SMST Defiance Daily Target 2X Short MSTR ETF	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both HYZD and SMST in my portfolio?

HYZD and SMST have a correlation of -0.19, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, HYZD or SMST?

SMST has higher volatility (55.38%) compared to HYZD (0.58%). In terms of maximum drawdown, HYZD dropped -25.66% vs SMST's -99.25%.

Which ETF is better, HYZD or SMST?

On 1-year performance, SMST leads with 257.89% vs 7.17% for HYZD. On fees, HYZD is cheaper at 0.43% per year. On volatility, HYZD has been the lower-risk option at 0.58%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, HYZD or SMST?

Over the 1-year period, SMST has performed better with a 257.89% return vs 7.17%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, HYZD or SMST?

HYZD is cheaper with a 0.43% expense ratio, compared with 1.29% for SMST.

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

HYZD has the higher dividend yield at 5.87%, compared with 0.00% for SMST.

What is the main difference between HYZD and SMST?

HYZD is categorized as High Yield Bonds, while SMST is Inverse Equities. They also come from different issuers: WisdomTree and Defiance. Their fees differ too: 0.43% for HYZD and 1.29% for SMST.

Which has better risk-adjusted returns?

HYZD currently has the higher Sharpe Ratio (2.40 vs 1.74), 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.