SMCZ vs. CHAT

Last updated Aug 4, 2026

SMCZ (Defiance Daily Target 2X Short SMCI ETF) and CHAT (Roundhill Generative AI & Technology ETF) are both exchange-traded funds - SMCZ is a Inverse Equities fund actively managed by Defiance, while CHAT is a Artificial Intelligence fund actively managed by Roundhill. Both are actively managed. Over the past year, SMCZ returned -73.11% vs 75.75% for CHAT. Their -0.67 correlation means they have often moved in opposite directions in the past. SMCZ charges 1.29%/yr vs 0.75%/yr for CHAT.

Performance

SMCZ vs. CHAT - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Defiance Daily Target 2X Short SMCI ETF (SMCZ) and Roundhill Generative AI & Technology ETF (CHAT). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, SMCZ achieves a -87.76% return, which is significantly lower than CHAT's 44.67% return.

SMCZ

• 1D: -1.52%
• 1M: -31.27%
• 6M: -85.93%
• YTD: -87.76%
• 1Y: -73.11%
• 3Y*: —
• 5Y*: —
• 10Y*: —
• ALL TIME*: -89.95%

CHAT

• 1D: 4.08%
• 1M: -3.93%
• 6M: 36.65%
• YTD: 44.67%
• 1Y: 75.75%
• 3Y*: 43.86%
• 5Y*: —
• 10Y*: —
• ALL TIME*: 46.88%

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

Liquidity Comparison

Position	Avg. Volume Value (2W)	Avg. Volume Value (1M)	Avg. Volume Value (3M)
CHAT Roundhill Generative AI & Technology ETF	$62.52M	$56.73M	$66.46M
SMCZ Defiance Daily Target 2X Short SMCI ETF	$23.07M	$12.69M	$14.60M

SMCZ vs. CHAT - Yearly Performance Comparison

	2026 (YTD)	2025
SMCZ Defiance Daily Target 2X Short SMCI ETF	-87.76%	-62.31%
CHAT Roundhill Generative AI & Technology ETF	44.67%	73.97%

Correlation

The correlation between SMCZ and CHAT is -0.65, meaning they have often moved in opposite directions in the past. This relationship can weaken or reverse as market conditions change.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	-0.65
Correlation (All Time) Calculated using the full available price history since Apr 1, 2025	-0.67

The correlation between SMCZ and CHAT has been stable across timeframes, ranging from -0.67 to -0.65 - a consistent structural relationship.

Return for Risk

SMCZ vs. CHAT — Risk / Return Rank

Compare historical risk-adjusted metric ranks over the past 12 months.

SMCZ

SMCZ Risk / Return Rank: 7
SMCZ Sharpe Ratio Rank: 6
SMCZ Sortino Ratio Rank: 12
SMCZ Omega Ratio Rank: 12
SMCZ Calmar Ratio Rank: 3
SMCZ Martin Ratio Rank: 1

CHAT

CHAT Risk / Return Rank: 76
CHAT Sharpe Ratio Rank: 82
CHAT Sortino Ratio Rank: 72
CHAT Omega Ratio Rank: 74
CHAT Calmar Ratio Rank: 76
CHAT Martin Ratio Rank: 74

The rank (0–100) uses a weighted average of the Sharpe, Sortino, Omega, Calmar, and Martin percentile ranks for the trailing 12 months. Higher means stronger historical risk-adjusted performance within the peer group.

SMCZ vs. CHAT - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Defiance Daily Target 2X Short SMCI ETF (SMCZ) and Roundhill Generative AI & Technology ETF (CHAT). 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.

	SMCZ	CHAT	Difference
Sharpe ratio: Return per unit of total volatility	-0.41	1.94	-2.35
Sortino ratio: Return per unit of downside risk	0.24	2.36	-2.12
Omega ratio: Gain probability vs. loss probability	1.03	1.31	-0.28
Calmar ratio: Return relative to maximum drawdown	-0.80	2.69	-3.49
Martin ratio: Return relative to average drawdown	-1.47	9.40	-10.87

SMCZ vs. CHAT - Sharpe Ratio Comparison

The current SMCZ Sharpe Ratio is -0.41, which is lower than the CHAT Sharpe Ratio of 1.94. The chart below compares the historical Sharpe Ratios of SMCZ and CHAT, 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

SMCZ vs. CHAT - Drawdown Comparison

The maximum SMCZ drawdown since its inception was -97.40%, which is greater than CHAT's maximum drawdown of -31.34%. Use the drawdown chart below to compare losses from any high point for SMCZ and CHAT.

Drawdown Indicators

	SMCZ	CHAT	Difference
Max Drawdown Largest peak-to-trough decline	-97.40%	-31.34%	-66.06%
Max Drawdown (1Y) Largest decline over 1 year	-91.49%	-28.34%	-63.15%
Max Drawdown (3Y) Largest decline over 3 years	—	-31.34%	—
Current Drawdown Current decline from peak	-96.42%	-18.04%	-78.38%
Average Drawdown Average peak-to-trough decline	-77.91%	-5.75%	-72.16%
Ulcer Index Depth and duration of drawdowns from previous peaks	49.58%	8.09%	+41.49%

Volatility

SMCZ vs. CHAT - Volatility Comparison

Defiance Daily Target 2X Short SMCI ETF (SMCZ) has a higher volatility of 65.84% compared to Roundhill Generative AI & Technology ETF (CHAT) at 16.63%. This indicates that SMCZ's price experiences larger fluctuations and is considered to be riskier than CHAT based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	SMCZ	CHAT	Difference
Volatility (1M) Calculated over the trailing 1-month period	65.84%	16.63%	+49.21%
Volatility (6M) Calculated over the trailing 6-month period	160.74%	34.48%	+126.26%
Volatility (1Y) Calculated over the trailing 1-year period	178.69%	39.30%	+139.39%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	175.68%	32.47%	+143.21%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	175.68%	32.47%	+143.21%

SMCZ vs. CHAT - Expense Ratio Comparison

SMCZ has a 1.29% expense ratio, which is higher than CHAT's 0.75% expense ratio.

Dividends

SMCZ vs. CHAT - Dividend Comparison

SMCZ's dividend yield for the trailing twelve months is around 16.59%, more than CHAT's 1.97% yield.

Position	TTM	2025
CHAT Roundhill Generative AI & Technology ETF	1.97%	2.85%
SMCZ Defiance Daily Target 2X Short SMCI ETF	16.59%	2.03%

Frequently Asked Questions

Can I hold both SMCZ and CHAT in my portfolio?

SMCZ and CHAT have a correlation of -0.65, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, SMCZ or CHAT?

SMCZ has higher volatility (65.84%) compared to CHAT (16.63%). In terms of maximum drawdown, SMCZ dropped -97.40% vs CHAT's -31.34%.

Which ETF is better, SMCZ or CHAT?

On 1-year performance, CHAT leads with 75.75% vs -73.11% for SMCZ. On fees, CHAT is cheaper at 0.75% per year. On volatility, CHAT has been the lower-risk option at 16.63%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, SMCZ or CHAT?

Over the 1-year period, CHAT has performed better with a 75.75% return vs -73.11%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, SMCZ or CHAT?

CHAT is cheaper with a 0.75% expense ratio, compared with 1.29% for SMCZ.

Which ETF pays a higher dividend yield, SMCZ or CHAT?

SMCZ has the higher dividend yield at 16.59%, compared with 1.97% for CHAT.

What is the main difference between SMCZ and CHAT?

SMCZ is categorized as Inverse Equities, while CHAT is Artificial Intelligence. They also come from different issuers: Defiance and Roundhill. Their fees differ too: 1.29% for SMCZ and 0.75% for CHAT.

Which has better risk-adjusted returns?

CHAT currently has the higher Sharpe Ratio (1.94 vs -0.41), 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.