MSDD vs. SMST

Last updated Jul 12, 2026

MSDD (GraniteShares 2x Short MSTR Daily ETF) and SMST (Defiance Daily Target 2X Short MSTR ETF) are both Inverse Equities funds. Both are actively managed. Over the past year, MSDD returned 151.71% vs 223.04% for SMST. Their correlation of 0.93 suggests significant overlap in exposure. MSDD charges 1.50%/yr vs 1.29%/yr for SMST.

Performance

MSDD vs. SMST - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in GraniteShares 2x Short MSTR Daily ETF (MSDD) 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, MSDD achieves a -48.72% return, which is significantly lower than SMST's -31.56% return.

MSDD

• 1D: 0.00%
• 1M: -0.02%
• 6M: -43.28%
• YTD: -48.72%
• 1Y: 151.71%
• 3Y*: —
• 5Y*: —
• 10Y*: —

SMST

• 1D: -1.67%
• 1M: 37.17%
• 6M: -24.18%
• YTD: -31.56%
• 1Y: 223.04%
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

MSDD vs. SMST - Yearly Performance Comparison

	2026 (YTD)	2025
MSDD GraniteShares 2x Short MSTR Daily ETF	-48.72%	274.52%
SMST Defiance Daily Target 2X Short MSTR ETF	-31.56%	256.24%

Correlation

The correlation between MSDD and SMST is 0.92, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.92
Correlation (All Time) Calculated using the full available price history since Jun 10, 2025	0.93

The correlation between MSDD and SMST has been stable across timeframes, ranging from 0.92 to 0.93 - a consistent structural relationship.

Return for Risk

MSDD vs. SMST — Risk / Return Rank

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

MSDD

Risk / return metrics aren't available yet — we need at least 12 months of trading data to calculate them.

SMST

SMST Risk / Return Rank: 53
SMST Sharpe Ratio Rank: 49
SMST Sortino Ratio Rank: 58
SMST Omega Ratio Rank: 58
SMST Calmar Ratio Rank: 60
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.

MSDD vs. SMST - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for GraniteShares 2x Short MSTR Daily ETF (MSDD) 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.

	MSDD	SMST	Difference
Sharpe ratio: Return per unit of total volatility	0.55	1.37	-0.82
Sortino ratio: Return per unit of downside risk	1.66	2.22	-0.55
Omega ratio: Gain probability vs. loss probability	1.22	1.29	-0.07
Calmar ratio: Return relative to maximum drawdown	0.92	2.39	-1.47
Martin ratio: Return relative to average drawdown	1.81	4.64	-2.83

MSDD vs. SMST - Sharpe Ratio Comparison

The current MSDD Sharpe Ratio is 0.55, which is lower than the SMST Sharpe Ratio of 1.37. The chart below compares the historical Sharpe Ratios of MSDD 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

MSDD vs. SMST - Drawdown Comparison

The maximum MSDD drawdown since its inception was -84.91%, smaller than the maximum SMST drawdown of -99.25%. Use the drawdown chart below to compare losses from any high point for MSDD and SMST.

Drawdown Indicators

	MSDD	SMST	Difference
Max Drawdown Largest peak-to-trough decline	-84.91%	-99.25%	+14.34%
Max Drawdown (1Y) Largest decline over 1 year	-84.91%	-85.39%	+0.48%
Current Drawdown Current decline from peak	-68.63%	-97.31%	+28.68%
Average Drawdown Average peak-to-trough decline	-31.40%	-90.88%	+59.48%
Ulcer Index Depth and duration of drawdowns from previous peaks	43.10%	43.98%	-0.88%

Volatility

MSDD vs. SMST - Volatility Comparison

The current volatility for GraniteShares 2x Short MSTR Daily ETF (MSDD) is 32.11%, while Defiance Daily Target 2X Short MSTR ETF (SMST) has a volatility of 56.47%. This indicates that MSDD 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

	MSDD	SMST	Difference
Volatility (1M) Calculated over the trailing 1-month period	32.11%	56.47%	-24.36%
Volatility (6M) Calculated over the trailing 6-month period	124.37%	135.94%	-11.57%
Volatility (1Y) Calculated over the trailing 1-year period	140.94%	149.09%	-8.15%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	138.59%	167.87%	-29.28%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	138.59%	167.87%	-29.28%

MSDD vs. SMST - Expense Ratio Comparison

MSDD has a 1.50% expense ratio, which is higher than SMST's 1.29% expense ratio.

Dividends

MSDD vs. SMST - Dividend Comparison

Neither MSDD nor SMST has paid dividends to shareholders.

Tickers have no history of dividend payments

Frequently Asked Questions

Can I hold both MSDD and SMST in my portfolio?

With a correlation of 0.92, MSDD and SMST move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.

Which is riskier, MSDD or SMST?

SMST has higher volatility (56.47%) compared to MSDD (32.11%). In terms of maximum drawdown, MSDD dropped -84.91% vs SMST's -99.25%.

Which ETF is better, MSDD or SMST?

On 1-year performance, SMST leads with 223.04% vs 151.71% for MSDD. On fees, SMST is cheaper at 1.29% per year. On volatility, MSDD has been the lower-risk option at 32.11%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, MSDD or SMST?

Over the 1-year period, SMST has performed better with a 223.04% return vs 151.71%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, MSDD or SMST?

SMST is cheaper with a 1.29% expense ratio, compared with 1.50% for MSDD.

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

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

What is the main difference between MSDD and SMST?

They also come from different issuers: GraniteShares and Defiance. Their fees differ too: 1.50% for MSDD and 1.29% for SMST.

Which has better risk-adjusted returns?

SMST currently has the higher Sharpe Ratio (1.37 vs 0.55), 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.