MST vs. SMST

Last updated Jul 17, 2026

MST (Defiance Leveraged Long Income MSTR ETF) and SMST (Defiance Daily Target 2X Short MSTR ETF) are both exchange-traded funds - MST is a Derivative Income fund actively managed by Defiance, while SMST is a Inverse Equities fund actively managed by Defiance. Both are actively managed. Over the past year, MST returned -97.11% vs 257.89% for SMST. At a correlation of -0.99, they often move in opposite directions. MST charges 1.31%/yr vs 1.29%/yr for SMST.

Performance

MST vs. SMST - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Defiance Leveraged Long Income MSTR ETF (MST) 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, MST achieves a -72.88% return, which is significantly lower than SMST's -31.71% return.

MST

• 1D: -5.37%
• 1M: -44.37%
• 6M: -77.72%
• YTD: -72.88%
• 1Y: -97.11%
• 3Y*: —
• 5Y*: —
• 10Y*: —

SMST

• 1D: 7.64%
• 1M: 37.45%
• 6M: -8.12%
• YTD: -31.71%
• 1Y: 257.89%
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

MST vs. SMST - Yearly Performance Comparison

	2026 (YTD)	2025
MST Defiance Leveraged Long Income MSTR ETF	-72.88%	-87.60%
SMST Defiance Daily Target 2X Short MSTR ETF	-31.71%	211.41%

Correlation

The correlation between MST and SMST is -1.00, 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	-1.00
Correlation (All Time) Calculated using the full available price history since May 2, 2025	-0.99

The correlation between MST and SMST has been stable across timeframes, ranging from -1.00 to -0.99 - a consistent structural relationship.

Return for Risk

MST vs. SMST — Risk / Return Rank

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

MST

MST Risk / Return Rank: 1
MST Sharpe Ratio Rank: 3
MST Sortino Ratio Rank: 0
MST Omega Ratio Rank: 0
MST Calmar Ratio Rank: 0
MST Martin Ratio Rank: 3

SMST

SMST Risk / Return Rank: 63
SMST Sharpe Ratio Rank: 67
SMST Sortino Ratio Rank: 64
SMST Omega Ratio Rank: 64
SMST Calmar Ratio Rank: 75
SMST Martin Ratio Rank: 44

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.

MST vs. SMST - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Defiance Leveraged Long Income MSTR ETF (MST) 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.

	MST	SMST	Difference
Sharpe ratio: Return per unit of total volatility	-0.72	1.74	-2.46
Sortino ratio: Return per unit of downside risk	-2.66	2.38	-5.04
Omega ratio: Gain probability vs. loss probability	0.72	1.31	-0.59
Calmar ratio: Return relative to maximum drawdown	-0.99	3.04	-4.04
Martin ratio: Return relative to average drawdown	-1.23	5.82	-7.04

MST vs. SMST - Sharpe Ratio Comparison

The current MST Sharpe Ratio is -0.72, which is lower than the SMST Sharpe Ratio of 1.74. The chart below compares the historical Sharpe Ratios of MST 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

MST vs. SMST - Drawdown Comparison

The maximum MST drawdown since its inception was -97.68%, roughly equal to the maximum SMST drawdown of -99.25%. Use the drawdown chart below to compare losses from any high point for MST and SMST.

Drawdown Indicators

	MST	SMST	Difference
Max Drawdown Largest peak-to-trough decline	-97.68%	-99.25%	+1.57%
Max Drawdown (1Y) Largest decline over 1 year	-97.64%	-85.39%	-12.25%
Current Drawdown Current decline from peak	-97.11%	-97.32%	+0.21%
Average Drawdown Average peak-to-trough decline	-65.28%	-90.93%	+25.65%
Ulcer Index Depth and duration of drawdowns from previous peaks	79.33%	44.56%	+34.77%

Volatility

MST vs. SMST - Volatility Comparison

The current volatility for Defiance Leveraged Long Income MSTR ETF (MST) is 47.52%, while Defiance Daily Target 2X Short MSTR ETF (SMST) has a volatility of 55.38%. This indicates that MST 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

	MST	SMST	Difference
Volatility (1M) Calculated over the trailing 1-month period	47.52%	55.38%	-7.86%
Volatility (6M) Calculated over the trailing 6-month period	109.77%	135.32%	-25.55%
Volatility (1Y) Calculated over the trailing 1-year period	134.41%	149.40%	-14.99%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	127.52%	167.53%	-40.01%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	127.52%	167.53%	-40.01%

MST vs. SMST - Expense Ratio Comparison

MST has a 1.31% expense ratio, which is higher than SMST's 1.29% expense ratio.

Dividends

MST vs. SMST - Dividend Comparison

MST's dividend yield for the trailing twelve months is around 1,176.23%, while SMST has not paid dividends to shareholders.

Position	TTM	2025
MST Defiance Leveraged Long Income MSTR ETF	1,176.23%	381.22%
SMST Defiance Daily Target 2X Short MSTR ETF	0.00%	0.00%

Frequently Asked Questions

Can I hold both MST and SMST in my portfolio?

MST and SMST have a correlation of -1.00, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, MST or SMST?

SMST has higher volatility (55.38%) compared to MST (47.52%). In terms of maximum drawdown, MST dropped -97.68% vs SMST's -99.25%.

Which ETF is better, MST or SMST?

On 1-year performance, SMST leads with 257.89% vs -97.11% for MST. On fees, SMST is cheaper at 1.29% per year. On volatility, MST has been the lower-risk option at 47.52%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, MST or SMST?

Over the 1-year period, SMST has performed better with a 257.89% return vs -97.11%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, MST or SMST?

SMST is cheaper with a 1.29% expense ratio, compared with 1.31% for MST.

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

MST has the higher dividend yield at 1176.23%, compared with 0.00% for SMST.

What is the main difference between MST and SMST?

MST is categorized as Derivative Income, while SMST is Inverse Equities. Their fees differ too: 1.31% for MST and 1.29% for SMST.

Which has better risk-adjusted returns?

SMST currently has the higher Sharpe Ratio (1.74 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.