IWO vs. SMST

Last updated Jul 16, 2026

IWO (iShares Russell 2000 Growth ETF) and SMST (Defiance Daily Target 2X Short MSTR ETF) are both exchange-traded funds - IWO is a Small Cap Growth Equities fund tracking the Russell 2000 Growth Index, while SMST is a Inverse Equities fund actively managed by Defiance. IWO is passively managed, while SMST is actively managed. Over the past year, IWO returned 33.91% vs 213.47% for SMST. At a correlation of -0.49, they often move in opposite directions. IWO charges 0.24%/yr vs 1.29%/yr for SMST.

Performance

IWO vs. SMST - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares Russell 2000 Growth ETF (IWO) 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, IWO achieves a 18.60% return, which is significantly higher than SMST's -36.56% return.

IWO

• 1D: 0.15%
• 1M: -0.94%
• 6M: 10.89%
• YTD: 18.60%
• 1Y: 33.91%
• 3Y*: 16.35%
• 5Y*: 6.39%
• 10Y*: 11.09%

SMST

• 1D: 0.19%
• 1M: 44.40%
• 6M: -6.67%
• YTD: -36.56%
• 1Y: 213.47%
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

IWO vs. SMST - Yearly Performance Comparison

	2026 (YTD)	2025	2024
IWO iShares Russell 2000 Growth ETF	18.60%	12.90%	6.13%
SMST Defiance Daily Target 2X Short MSTR ETF	-36.56%	-44.36%	-91.71%

Correlation

The correlation between IWO and SMST is -0.51, 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	-0.51
Correlation (All Time) Calculated using the full available price history since Aug 21, 2024	-0.49

The correlation between IWO and SMST has been stable across timeframes, ranging from -0.51 to -0.49 - a consistent structural relationship.

Return for Risk

IWO vs. SMST — Risk / Return Rank

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

IWO

IWO Risk / Return Rank: 55
IWO Sharpe Ratio Rank: 56
IWO Sortino Ratio Rank: 56
IWO Omega Ratio Rank: 50
IWO Calmar Ratio Rank: 56
IWO Martin Ratio Rank: 59

SMST

SMST Risk / Return Rank: 53
SMST Sharpe Ratio Rank: 50
SMST Sortino Ratio Rank: 57
SMST Omega Ratio Rank: 58
SMST Calmar Ratio Rank: 62
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.

IWO vs. SMST - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares Russell 2000 Growth ETF (IWO) 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.

	IWO	SMST	Difference
Sharpe ratio: Return per unit of total volatility	1.54	1.44	+0.10
Sortino ratio: Return per unit of downside risk	2.16	2.25	-0.08
Omega ratio: Gain probability vs. loss probability	1.26	1.29	-0.03
Calmar ratio: Return relative to maximum drawdown	2.29	2.52	-0.23
Martin ratio: Return relative to average drawdown	8.13	4.83	+3.30

IWO vs. SMST - Sharpe Ratio Comparison

The current IWO Sharpe Ratio is 1.54, which is comparable to the SMST Sharpe Ratio of 1.44. The chart below compares the historical Sharpe Ratios of IWO 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

IWO vs. SMST - Drawdown Comparison

The maximum IWO drawdown since its inception was -60.11%, smaller than the maximum SMST drawdown of -99.25%. Use the drawdown chart below to compare losses from any high point for IWO and SMST.

Drawdown Indicators

	IWO	SMST	Difference
Max Drawdown Largest peak-to-trough decline	-60.11%	-99.25%	+39.14%
Max Drawdown (1Y) Largest decline over 1 year	-14.87%	-85.39%	+70.52%
Max Drawdown (3Y) Largest decline over 3 years	-28.57%	—	—
Max Drawdown (5Y) Largest decline over 5 years	-40.51%	—	—
Max Drawdown (10Y) Largest decline over 10 years	-42.02%	—	—
Current Drawdown Current decline from peak	-2.90%	-97.51%	+94.61%
Average Drawdown Average peak-to-trough decline	-16.64%	-90.92%	+74.28%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.18%	44.41%	-40.23%

Volatility

IWO vs. SMST - Volatility Comparison

The current volatility for iShares Russell 2000 Growth ETF (IWO) is 5.36%, while Defiance Daily Target 2X Short MSTR ETF (SMST) has a volatility of 56.99%. This indicates that IWO 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

	IWO	SMST	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.36%	56.99%	-51.63%
Volatility (6M) Calculated over the trailing 6-month period	16.67%	135.90%	-119.23%
Volatility (1Y) Calculated over the trailing 1-year period	22.13%	149.26%	-127.13%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	24.63%	167.61%	-142.98%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	24.14%	167.61%	-143.47%

IWO vs. SMST - Expense Ratio Comparison

IWO has a 0.24% expense ratio, which is lower than SMST's 1.29% expense ratio.

Dividends

IWO vs. SMST - Dividend Comparison

IWO's dividend yield for the trailing twelve months is around 0.43%, while SMST has not paid dividends to shareholders.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
IWO iShares Russell 2000 Growth ETF	0.43%	0.56%	0.80%	0.73%	0.73%	0.32%	0.44%	0.71%	0.76%	0.73%	0.97%	0.89%
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 IWO and SMST in my portfolio?

IWO and SMST have a correlation of -0.51, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, IWO or SMST?

SMST has higher volatility (56.99%) compared to IWO (5.36%). In terms of maximum drawdown, IWO dropped -60.11% vs SMST's -99.25%.

Which ETF is better, IWO or SMST?

On 1-year performance, SMST leads with 213.47% vs 33.91% for IWO. On fees, IWO is cheaper at 0.24% per year. On volatility, IWO has been the lower-risk option at 5.36%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, IWO or SMST?

Over the 1-year period, SMST has performed better with a 213.47% return vs 33.91%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, IWO or SMST?

IWO is cheaper with a 0.24% expense ratio, compared with 1.29% for SMST.

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

IWO has the higher dividend yield at 0.43%, compared with 0.00% for SMST.

What is the main difference between IWO and SMST?

IWO is categorized as Small Cap Growth Equities, while SMST is Inverse Equities. They also come from different issuers: iShares and Defiance. Their fees differ too: 0.24% for IWO and 1.29% for SMST.

Which has better risk-adjusted returns?

IWO currently has the higher Sharpe Ratio (1.54 vs 1.44), 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.