IWC vs. SMST
IWC (iShares Micro-Cap ETF) and SMST (Defiance Daily Target 2X Short MSTR ETF) are both exchange-traded funds - IWC is a Small Cap Blend Equities fund tracking the Russell Microcap Index, while SMST is a Inverse Equities fund actively managed by Defiance. IWC is passively managed, while SMST is actively managed. Over the past year, IWC returned 48.46% vs 240.03% for SMST. At a correlation of -0.49, they often move in opposite directions. IWC charges 0.60%/yr vs 1.29%/yr for SMST.
Performance
IWC vs. SMST - Performance Comparison
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Returns By Period
In the year-to-date period, IWC achieves a 23.21% return, which is significantly higher than SMST's -27.96% return.
IWC
- 1D
- -1.02%
- 1M
- 2.50%
- 6M
- 16.07%
- YTD
- 23.21%
- 1Y
- 48.46%
- 3Y*
- 21.80%
- 5Y*
- 7.27%
- 10Y*
- 11.37%
SMST
- 1D
- 5.26%
- 1M
- 44.38%
- 6M
- -15.07%
- YTD
- -27.96%
- 1Y
- 240.03%
- 3Y*
- —
- 5Y*
- —
- 10Y*
- —
IWC vs. SMST - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | |
|---|---|---|---|
IWC iShares Micro-Cap ETF | 23.21% | 22.45% | 9.55% |
SMST Defiance Daily Target 2X Short MSTR ETF | -27.96% | -44.36% | -91.71% |
Correlation
The correlation between IWC and SMST is -0.53, 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 | -0.53 |
Correlation (All Time) Calculated using the full available price history since Aug 21, 2024 | -0.49 |
The correlation between IWC and SMST has been stable across timeframes, ranging from -0.53 to -0.49 - a consistent structural relationship.
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Return for Risk
IWC vs. SMST — Risk / Return Rank
IWC
SMST
IWC vs. SMST - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares Micro-Cap ETF (IWC) 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.
| IWC | SMST | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.39 | ||
| Sortino ratioReturn per unit of downside risk | +0.35 | ||
| Omega ratioGain probability vs. loss probability | 1.32 | 1.30 | +0.02 |
| Calmar ratioReturn relative to maximum drawdown | 3.92 | 2.83 | +1.09 |
| Martin ratioReturn relative to average drawdown | 12.71 | 5.47 | +7.24 |
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Drawdowns
IWC vs. SMST - Drawdown Comparison
The maximum IWC drawdown since its inception was -64.61%, smaller than the maximum SMST drawdown of -99.25%. Use the drawdown chart below to compare losses from any high point for IWC and SMST.
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Drawdown Indicators
| IWC | SMST | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -64.61% | -99.25% | +34.64% |
Max Drawdown (1Y)Largest decline over 1 year | -12.43% | -85.39% | +72.96% |
Max Drawdown (3Y)Largest decline over 3 years | -29.46% | — | — |
Max Drawdown (5Y)Largest decline over 5 years | -40.61% | — | — |
Max Drawdown (10Y)Largest decline over 10 years | -47.21% | — | — |
Current DrawdownCurrent decline from peak | -3.40% | -97.17% | +93.77% |
Average DrawdownAverage peak-to-trough decline | -15.21% | -90.89% | +75.68% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 3.82% | 44.09% | -40.27% |
Volatility
IWC vs. SMST - Volatility Comparison
The current volatility for iShares Micro-Cap ETF (IWC) is 5.99%, while Defiance Daily Target 2X Short MSTR ETF (SMST) has a volatility of 56.59%. This indicates that IWC 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.
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Volatility by Period
| IWC | SMST | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 5.99% | 56.59% | -50.60% |
Volatility (6M)Calculated over the trailing 6-month period | 18.27% | 135.88% | -117.61% |
Volatility (1Y)Calculated over the trailing 1-year period | 24.27% | 149.23% | -124.96% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 24.53% | 167.74% | -143.21% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 24.47% | 167.74% | -143.27% |
IWC vs. SMST - Expense Ratio Comparison
IWC has a 0.60% expense ratio, which is lower than SMST's 1.29% expense ratio.
Dividends
IWC vs. SMST - Dividend Comparison
IWC's dividend yield for the trailing twelve months is around 0.98%, while SMST has not paid dividends to shareholders.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
IWC iShares Micro-Cap ETF | 0.98% | 1.10% | 1.06% | 1.17% | 1.18% | 0.78% | 0.98% | 1.19% | 1.01% | 1.09% | 1.16% | 1.49% |
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
IWC and SMST have a correlation of -0.53, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
SMST has higher volatility (56.59%) compared to IWC (5.99%). In terms of maximum drawdown, IWC dropped -64.61% vs SMST's -99.25%.
On 1-year performance, SMST leads with 240.03% vs 48.46% for IWC. On fees, IWC is cheaper at 0.60% per year. On volatility, IWC has been the lower-risk option at 5.99%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 1-year period, SMST has performed better with a 240.03% return vs 48.46%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
IWC is cheaper with a 0.60% expense ratio, compared with 1.29% for SMST.
IWC has the higher dividend yield at 0.98%, compared with 0.00% for SMST.
IWC is categorized as Small Cap Blend Equities, while SMST is Inverse Equities. They also come from different issuers: iShares and Defiance. Their fees differ too: 0.60% for IWC and 1.29% for SMST.
IWC currently has the higher Sharpe Ratio (2.01 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.
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