MSTZ vs. SMST

Last updated Jun 3, 2026

MSTZ (T-REX 2X Inverse MSTR Daily Target ETF) and SMST (Defiance Daily Target 2X Short MSTR ETF) are both Inverse Equities funds. Both are actively managed. Over the past year, MSTZ returned 56.67% vs 40.09% for SMST. With a 1.00 correlation, they move nearly in lockstep. MSTZ charges 1.05%/yr vs 1.29%/yr for SMST.

Performance

MSTZ vs. SMST - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in T-REX 2X Inverse MSTR Daily Target ETF (MSTZ) 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 MSTZ having a -53.41% return and SMST slightly lower at -55.68%.

MSTZ

• 1D: 18.20%
• 1M: 51.33%
• YTD: -53.41%
• 6M: -37.72%
• 1Y: 56.67%
• 3Y*: —
• 5Y*: —
• 10Y*: —

SMST

• 1D: 17.75%
• 1M: 49.84%
• YTD: -55.68%
• 6M: -41.65%
• 1Y: 40.09%
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

MSTZ vs. SMST - Yearly Performance Comparison

	2026 (YTD)	2025	2024
MSTZ T-REX 2X Inverse MSTR Daily Target ETF	-53.41%	-38.95%	-94.26%
SMST Defiance Daily Target 2X Short MSTR ETF	-55.68%	-44.36%	-90.81%

Correlation

The correlation between MSTZ 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 (1Y) Calculated over the trailing 1-year period	1.00
Correlation (All Time) Calculated using the full available price history since Sep 19, 2024	1.00

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

Return for Risk

MSTZ vs. SMST — Risk / Return Rank

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

MSTZ

MSTZ Risk / Return Rank: 21
MSTZ Sharpe Ratio Rank: 15
MSTZ Sortino Ratio Rank: 28
MSTZ Omega Ratio Rank: 29
MSTZ Calmar Ratio Rank: 17
MSTZ Martin Ratio Rank: 15

SMST

SMST Risk / Return Rank: 18
SMST Sharpe Ratio Rank: 13
SMST Sortino Ratio Rank: 25
SMST Omega Ratio Rank: 26
SMST Calmar Ratio Rank: 14
SMST Martin Ratio Rank: 13

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.

MSTZ vs. SMST - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for T-REX 2X Inverse MSTR Daily Target ETF (MSTZ) 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.

	MSTZ	SMST	Difference
Sharpe ratio Return per unit of total volatility	0.41	0.29	+0.12
Sortino ratio Return per unit of downside risk	1.52	1.40	+0.11
Omega ratio Gain probability vs. loss probability	1.19	1.18	+0.02
Calmar ratio Return relative to maximum drawdown	0.64	0.44	+0.20
Martin ratio Return relative to average drawdown	1.35	0.93	+0.42
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

MSTZ vs. SMST - Sharpe Ratio Comparison

The current MSTZ Sharpe Ratio is 0.41, which is higher than the SMST Sharpe Ratio of 0.29. The chart below compares the historical Sharpe Ratios of MSTZ 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

	MSTZ	SMST	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	0.41	0.29	+0.12
Sharpe Ratio (All Time) Calculated using the full available price history	-0.54	-0.53	-0.01

Drawdowns

MSTZ vs. SMST - Drawdown Comparison

The maximum MSTZ drawdown since its inception was -99.36%, roughly equal to the maximum SMST drawdown of -99.25%. Use the drawdown chart below to compare losses from any high point for MSTZ and SMST.

Drawdown Indicators

	MSTZ	SMST	Difference
Max Drawdown Largest peak-to-trough decline	-99.36%	-99.25%	-0.11%
Max Drawdown (1Y) Largest decline over 1 year	-84.89%	-85.39%	+0.50%
Current Drawdown Current decline from peak	-98.37%	-98.26%	-0.11%
Average Drawdown Average peak-to-trough decline	-94.38%	-90.65%	-3.73%
Ulcer Index Depth and duration of drawdowns from previous peaks	40.08%	40.51%	-0.43%

Volatility

MSTZ vs. SMST - Volatility Comparison

T-REX 2X Inverse MSTR Daily Target ETF (MSTZ) and Defiance Daily Target 2X Short MSTR ETF (SMST) have volatilities of 37.37% and 37.28%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	MSTZ	SMST	Difference
Volatility (1M) Calculated over the trailing 1-month period	37.37%	37.28%	+0.09%
Volatility (6M) Calculated over the trailing 6-month period	125.27%	125.90%	-0.63%
Volatility (1Y) Calculated over the trailing 1-year period	139.71%	140.31%	-0.60%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	170.21%	166.64%	+3.57%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	170.21%	166.64%	+3.57%

MSTZ vs. SMST - Expense Ratio Comparison

MSTZ has a 1.05% expense ratio, which is lower than SMST's 1.29% expense ratio.

Dividends

MSTZ vs. SMST - Dividend Comparison

Neither MSTZ nor SMST has paid dividends to shareholders.

Tickers have no history of dividend payments

Frequently Asked Questions

Can I hold both MSTZ and SMST in my portfolio?

With a correlation of 1.00, MSTZ 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, MSTZ or SMST?

MSTZ has higher volatility (37.37%) compared to SMST (37.28%). In terms of maximum drawdown, MSTZ dropped -99.36% vs SMST's -99.25%.

Which ETF is better, MSTZ or SMST?

On 1-year performance, MSTZ leads with 56.67% vs 40.09% for SMST. On fees, MSTZ is cheaper at 1.05% per year. Their volatility is very similar. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, MSTZ or SMST?

Over the 1-year period, MSTZ has performed better with a 56.67% return vs 40.09%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, MSTZ or SMST?

MSTZ is cheaper with a 1.05% expense ratio, compared with 1.29% for SMST.

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

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

What is the main difference between MSTZ and SMST?

They also come from different issuers: REX and Defiance. Their fees differ too: 1.05% for MSTZ and 1.29% for SMST.

Which has better risk-adjusted returns?

MSTZ currently has the higher Sharpe Ratio (0.41 vs 0.29), 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.