MSTX vs. SMST

Last updated Jun 4, 2026

MSTX (Defiance Daily Target 2X Long MSTR ETF) and SMST (Defiance Daily Target 2X Short MSTR ETF) are both exchange-traded funds - MSTX is a Leveraged Equities fund actively managed by Defiance, while SMST is a Inverse Equities fund actively managed by Defiance. Both are actively managed. Over the past year, MSTX returned -95.49% vs 73.40% for SMST. At a correlation of -1.00, they often move in opposite directions. Both charge a 1.29% expense ratio.

Performance

MSTX vs. SMST - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Defiance Daily Target 2X Long MSTR ETF (MSTX) 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, MSTX achieves a -54.94% return, which is significantly lower than SMST's -49.49% return.

MSTX

• 1D: -14.41%
• 1M: -56.02%
• YTD: -54.94%
• 6M: -72.02%
• 1Y: -95.49%
• 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)

MSTX vs. SMST - Yearly Performance Comparison

	2026 (YTD)	2025	2024
MSTX Defiance Daily Target 2X Long MSTR ETF	-54.94%	-89.06%	110.32%
SMST Defiance Daily Target 2X Short MSTR ETF	-49.49%	-44.36%	-90.90%

Correlation

The correlation between MSTX 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 Aug 22, 2024	-1.00

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

Return for Risk

MSTX vs. SMST — Risk / Return Rank

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

MSTX

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

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.

MSTX vs. SMST - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Defiance Daily Target 2X Long MSTR ETF (MSTX) 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.

	MSTX	SMST	Difference
Sharpe ratio: Return per unit of total volatility	-0.68	0.52	-1.21
Sortino ratio: Return per unit of downside risk	-2.10	1.63	-3.73
Omega ratio: Gain probability vs. loss probability	0.78	1.21	-0.43
Calmar ratio: Return relative to maximum drawdown	-0.99	0.86	-1.85
Martin ratio: Return relative to average drawdown	-1.27	1.81	-3.07
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

MSTX vs. SMST - Sharpe Ratio Comparison

The current MSTX Sharpe Ratio is -0.68, which is lower than the SMST Sharpe Ratio of 0.52. The chart below compares the historical Sharpe Ratios of MSTX 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.

Sharpe Ratios by Period

	MSTX	SMST	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	-0.68	0.52	-1.21
Sharpe Ratio (All Time) Calculated using the full available price history	-0.42	-0.52	+0.11

Drawdowns

MSTX vs. SMST - Drawdown Comparison

The maximum MSTX drawdown since its inception was -98.66%, roughly equal to the maximum SMST drawdown of -99.25%. Use the drawdown chart below to compare losses from any high point for MSTX and SMST.

Drawdown Indicators

	MSTX	SMST	Difference
Max Drawdown Largest peak-to-trough decline	-98.66%	-99.25%	+0.59%
Max Drawdown (1Y) Largest decline over 1 year	-96.62%	-85.39%	-11.23%
Current Drawdown Current decline from peak	-98.61%	-98.02%	-0.59%
Average Drawdown Average peak-to-trough decline	-69.94%	-90.67%	+20.73%
Ulcer Index Depth and duration of drawdowns from previous peaks	75.26%	40.73%	+34.53%

Volatility

MSTX vs. SMST - Volatility Comparison

Defiance Daily Target 2X Long MSTR ETF (MSTX) has a higher volatility of 39.64% compared to Defiance Daily Target 2X Short MSTR ETF (SMST) at 37.33%. This indicates that MSTX's price experiences larger fluctuations and is considered to be riskier than SMST based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	MSTX	SMST	Difference
Volatility (1M) Calculated over the trailing 1-month period	39.64%	37.33%	+2.31%
Volatility (6M) Calculated over the trailing 6-month period	112.57%	126.48%	-13.91%
Volatility (1Y) Calculated over the trailing 1-year period	140.09%	140.93%	-0.84%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	167.46%	166.79%	+0.67%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	167.46%	166.79%	+0.67%

MSTX vs. SMST - Expense Ratio Comparison

Both MSTX and SMST have an expense ratio of 1.29%.

Dividends

MSTX vs. SMST - Dividend Comparison

Neither MSTX nor SMST has paid dividends to shareholders.

Position	TTM	2025	2024
MSTX Defiance Daily Target 2X Long MSTR ETF	0.00%	0.00%	41.01%
SMST Defiance Daily Target 2X Short MSTR ETF	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both MSTX and SMST in my portfolio?

MSTX 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, MSTX or SMST?

MSTX has higher volatility (39.64%) compared to SMST (37.33%). In terms of maximum drawdown, MSTX dropped -98.66% vs SMST's -99.25%.

Which ETF is better, MSTX or SMST?

On 1-year performance, SMST leads with 73.40% vs -95.49% for MSTX. Both ETFs have the same 1.29% expense ratio. On volatility, SMST has been the lower-risk option at 37.33%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, MSTX or SMST?

Over the 1-year period, SMST has performed better with a 73.40% return vs -95.49%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, MSTX or SMST?

MSTX and SMST have the same expense ratio: 1.29% per year.

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

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

What is the main difference between MSTX and SMST?

MSTX is categorized as Leveraged Equities, while SMST is Inverse Equities.

Which has better risk-adjusted returns?

SMST currently has the higher Sharpe Ratio (0.52 vs -0.68), 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.