MSDD vs. SMST

Last updated Jun 4, 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. With a 1.00 correlation, they move nearly in lockstep. 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

The year-to-date returns for both stocks are quite close, with MSDD having a -47.16% return and SMST slightly lower at -49.49%.

MSDD

• 1D: 13.67%
• 1M: 85.18%
• YTD: -47.16%
• 6M: -24.30%
• 1Y: —
• 3Y*: —
• 5Y*: —
• 10Y*: —

SMST

• 1D: 13.96%
• 1M: 85.04%
• YTD: -49.49%
• 6M: -27.60%
• 1Y: 73.40%
• 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	-47.16%	271.43%
SMST Defiance Daily Target 2X Short MSTR ETF	-49.49%	254.74%

Correlation

The correlation between MSDD and SMST is 1.00 - these two move nearly in lockstep. At this level, holding both provides almost no diversification benefit. If you already own one, adding the other does little to reduce portfolio risk.

	Correlation
Correlation (All Time) Calculated using the full available price history since Jun 11, 2025	1.00

Return for Risk

MSDD vs. SMST — Risk / Return Rank

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

SMST

SMST Risk / Return Rank: 24
SMST Sharpe Ratio Rank: 18
SMST Sortino Ratio Rank: 31
SMST Omega Ratio Rank: 32
SMST Calmar Ratio Rank: 21
SMST Martin Ratio Rank: 18

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.

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

Sharpe Ratios by Period

	MSDD	SMST	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	—	0.52	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.70	-0.52	+1.23

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	—	-85.39%	—
Current Drawdown Current decline from peak	-67.67%	-98.02%	+30.35%
Average Drawdown Average peak-to-trough decline	-29.42%	-90.67%	+61.25%
Ulcer Index Depth and duration of drawdowns from previous peaks	—	40.73%	—

Volatility

Volatility by Period

	MSDD	SMST	Difference
Volatility (1M) Calculated over the trailing 1-month period	—	37.33%	—
Volatility (6M) Calculated over the trailing 6-month period	—	126.48%	—
Volatility (1Y) Calculated over the trailing 1-year period	141.56%	140.93%	+0.63%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	141.56%	166.79%	-25.23%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	141.56%	166.79%	-25.23%

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 1.00, 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 ETF is better, MSDD or SMST?

On fees, SMST is cheaper at 1.29% per year. The better choice depends on whether you care most about return, fees, risk, or income.

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.