KPDD vs. SMST

Last updated Jul 14, 2026

KPDD (KraneShares 2x Long PDD Daily ETF) and SMST (Defiance Daily Target 2X Short MSTR ETF) are both exchange-traded funds - KPDD is a Leveraged Equities fund tracking the PDD Holdings Inc. ADR (PDD), while SMST is a Inverse Equities fund actively managed by Defiance. KPDD is passively managed, while SMST is actively managed. Over the past year, KPDD returned -48.40% vs 240.03% for SMST. At a correlation of -0.28, they often move in opposite directions. KPDD charges 1.27%/yr vs 1.29%/yr for SMST.

Performance

KPDD vs. SMST - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in KraneShares 2x Long PDD Daily ETF (KPDD) 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, KPDD achieves a -51.43% return, which is significantly lower than SMST's -27.96% return.

KPDD

• 1D: -1.41%
• 1M: 5.28%
• 6M: -55.43%
• YTD: -51.43%
• 1Y: -48.40%
• 3Y*: —
• 5Y*: —
• 10Y*: —

SMST

• 1D: 5.26%
• 1M: 44.38%
• 6M: -15.07%
• YTD: -27.96%
• 1Y: 240.03%
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

KPDD vs. SMST - Yearly Performance Comparison

	2026 (YTD)	2025
KPDD KraneShares 2x Long PDD Daily ETF	-51.43%	-26.34%
SMST Defiance Daily Target 2X Short MSTR ETF	-27.96%	-21.75%

Correlation

The correlation between KPDD and SMST is -0.25, 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	-0.25
Correlation (All Time) Calculated using the full available price history since Mar 12, 2025	-0.28

Return for Risk

KPDD vs. SMST — Risk / Return Rank

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

KPDD

KPDD Risk / Return Rank: 4
KPDD Sharpe Ratio Rank: 3
KPDD Sortino Ratio Rank: 4
KPDD Omega Ratio Rank: 4
KPDD Calmar Ratio Rank: 4
KPDD Martin Ratio Rank: 3

SMST

SMST Risk / Return Rank: 60
SMST Sharpe Ratio Rank: 62
SMST Sortino Ratio Rank: 63
SMST Omega Ratio Rank: 63
SMST Calmar Ratio Rank: 71
SMST Martin Ratio Rank: 43

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.

KPDD vs. SMST - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for KraneShares 2x Long PDD Daily ETF (KPDD) 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.

	KPDD	SMST	Difference
Sharpe ratio: Return per unit of total volatility	-0.72	1.62	-2.34
Sortino ratio: Return per unit of downside risk	-0.86	2.33	-3.19
Omega ratio: Gain probability vs. loss probability	0.89	1.30	-0.41
Calmar ratio: Return relative to maximum drawdown	-0.64	2.83	-3.47
Martin ratio: Return relative to average drawdown	-1.17	5.47	-6.64

KPDD vs. SMST - Sharpe Ratio Comparison

The current KPDD Sharpe Ratio is -0.72, which is lower than the SMST Sharpe Ratio of 1.62. The chart below compares the historical Sharpe Ratios of KPDD 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

KPDD vs. SMST - Drawdown Comparison

The maximum KPDD drawdown since its inception was -77.47%, smaller than the maximum SMST drawdown of -99.25%. Use the drawdown chart below to compare losses from any high point for KPDD and SMST.

Drawdown Indicators

	KPDD	SMST	Difference
Max Drawdown Largest peak-to-trough decline	-77.47%	-99.25%	+21.78%
Max Drawdown (1Y) Largest decline over 1 year	-75.88%	-85.39%	+9.51%
Current Drawdown Current decline from peak	-70.47%	-97.17%	+26.70%
Average Drawdown Average peak-to-trough decline	-39.81%	-90.89%	+51.08%
Ulcer Index Depth and duration of drawdowns from previous peaks	41.32%	44.09%	-2.77%

Volatility

KPDD vs. SMST - Volatility Comparison

The current volatility for KraneShares 2x Long PDD Daily ETF (KPDD) is 22.97%, while Defiance Daily Target 2X Short MSTR ETF (SMST) has a volatility of 56.59%. This indicates that KPDD 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

	KPDD	SMST	Difference
Volatility (1M) Calculated over the trailing 1-month period	22.97%	56.59%	-33.62%
Volatility (6M) Calculated over the trailing 6-month period	53.60%	135.88%	-82.28%
Volatility (1Y) Calculated over the trailing 1-year period	67.58%	149.23%	-81.65%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	74.67%	167.74%	-93.07%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	74.67%	167.74%	-93.07%

KPDD vs. SMST - Expense Ratio Comparison

KPDD has a 1.27% expense ratio, which is lower than SMST's 1.29% expense ratio.

Dividends

KPDD vs. SMST - Dividend Comparison

KPDD's dividend yield for the trailing twelve months is around 119.16%, while SMST has not paid dividends to shareholders.

Position	TTM	2025
KPDD KraneShares 2x Long PDD Daily ETF	119.16%	57.87%
SMST Defiance Daily Target 2X Short MSTR ETF	0.00%	0.00%

Frequently Asked Questions

Can I hold both KPDD and SMST in my portfolio?

KPDD and SMST have a correlation of -0.25, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, KPDD or SMST?

SMST has higher volatility (56.59%) compared to KPDD (22.97%). In terms of maximum drawdown, KPDD dropped -77.47% vs SMST's -99.25%.

Which ETF is better, KPDD or SMST?

On 1-year performance, SMST leads with 240.03% vs -48.40% for KPDD. On fees, KPDD is cheaper at 1.27% per year. On volatility, KPDD has been the lower-risk option at 22.97%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, KPDD or SMST?

Over the 1-year period, SMST has performed better with a 240.03% return vs -48.40%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, KPDD or SMST?

KPDD is cheaper with a 1.27% expense ratio, compared with 1.29% for SMST.

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

KPDD has the higher dividend yield at 119.16%, compared with 0.00% for SMST.

What is the main difference between KPDD and SMST?

KPDD is categorized as Leveraged Equities, while SMST is Inverse Equities. They also come from different issuers: KraneShares and Defiance. Their fees differ too: 1.27% for KPDD and 1.29% for SMST.

Which has better risk-adjusted returns?

SMST currently has the higher Sharpe Ratio (1.62 vs -0.72), 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.