SMCZ vs. MSFD

Last updated Jun 4, 2026

SMCZ (Defiance Daily Target 2X Short SMCI ETF) and MSFD (Direxion Daily MSFT Bear 1X Shares) are both Inverse Equities funds. SMCZ is actively managed, while MSFD is passively managed. Over the past year, SMCZ returned -89.94% vs 7.43% for MSFD. At a 0.36 correlation, their price movements are largely independent. SMCZ charges 1.29%/yr vs 1.06%/yr for MSFD.

Performance

SMCZ vs. MSFD - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Defiance Daily Target 2X Short SMCI ETF (SMCZ) and Direxion Daily MSFT Bear 1X Shares (MSFD). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, SMCZ achieves a -90.14% return, which is significantly lower than MSFD's 10.43% return.

SMCZ

• 1D: 10.93%
• 1M: -77.87%
• YTD: -90.14%
• 6M: -87.78%
• 1Y: -89.94%
• 3Y*: —
• 5Y*: —
• 10Y*: —

MSFD

• 1D: 3.26%
• 1M: -3.86%
• YTD: 10.43%
• 6M: 9.36%
• 1Y: 7.43%
• 3Y*: -7.16%
• 5Y*: —
• 10Y*: —

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

SMCZ vs. MSFD - Yearly Performance Comparison

	2026 (YTD)	2025
SMCZ Defiance Daily Target 2X Short SMCI ETF	-90.14%	-61.04%
MSFD Direxion Daily MSFT Bear 1X Shares	10.43%	-21.06%

Correlation

The correlation between SMCZ and MSFD is 0.31, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.31
Correlation (All Time) Calculated using the full available price history since Apr 2, 2025	0.36

Return for Risk

SMCZ vs. MSFD — Risk / Return Rank

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

SMCZ

SMCZ Risk / Return Rank: 2
SMCZ Sharpe Ratio Rank: 4
SMCZ Sortino Ratio Rank: 3
SMCZ Omega Ratio Rank: 3
SMCZ Calmar Ratio Rank: 0
SMCZ Martin Ratio Rank: 0

MSFD

MSFD Risk / Return Rank: 13
MSFD Sharpe Ratio Rank: 13
MSFD Sortino Ratio Rank: 14
MSFD Omega Ratio Rank: 14
MSFD Calmar Ratio Rank: 13
MSFD 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.

SMCZ vs. MSFD - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Defiance Daily Target 2X Short SMCI ETF (SMCZ) and Direxion Daily MSFT Bear 1X Shares (MSFD). 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.

	SMCZ	MSFD	Difference
Sharpe ratio: Return per unit of total volatility	-0.57	0.29	-0.87
Sortino ratio: Return per unit of downside risk	-0.94	0.63	-1.58
Omega ratio: Gain probability vs. loss probability	0.88	1.08	-0.19
Calmar ratio: Return relative to maximum drawdown	-0.98	0.32	-1.30
Martin ratio: Return relative to average drawdown	-2.00	0.89	-2.89
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

SMCZ vs. MSFD - Sharpe Ratio Comparison

The current SMCZ Sharpe Ratio is -0.57, which is lower than the MSFD Sharpe Ratio of 0.29. The chart below compares the historical Sharpe Ratios of SMCZ and MSFD, 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

	SMCZ	MSFD	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	-0.57	0.29	-0.87
Sharpe Ratio (All Time) Calculated using the full available price history	-0.58	-0.51	-0.06

Drawdowns

SMCZ vs. MSFD - Drawdown Comparison

The maximum SMCZ drawdown since its inception was -97.40%, which is greater than MSFD's maximum drawdown of -59.90%. Use the drawdown chart below to compare losses from any high point for SMCZ and MSFD.

Drawdown Indicators

	SMCZ	MSFD	Difference
Max Drawdown Largest peak-to-trough decline	-97.40%	-59.90%	-37.50%
Max Drawdown (1Y) Largest decline over 1 year	-91.74%	-23.25%	-68.49%
Max Drawdown (3Y) Largest decline over 3 years	—	-40.50%	—
Current Drawdown Current decline from peak	-97.12%	-50.20%	-46.92%
Average Drawdown Average peak-to-trough decline	-75.71%	-41.59%	-34.12%
Ulcer Index Depth and duration of drawdowns from previous peaks	44.99%	8.40%	+36.59%

Volatility

SMCZ vs. MSFD - Volatility Comparison

Defiance Daily Target 2X Short SMCI ETF (SMCZ) has a higher volatility of 80.07% compared to Direxion Daily MSFT Bear 1X Shares (MSFD) at 10.12%. This indicates that SMCZ's price experiences larger fluctuations and is considered to be riskier than MSFD based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	SMCZ	MSFD	Difference
Volatility (1M) Calculated over the trailing 1-month period	80.07%	10.12%	+69.95%
Volatility (6M) Calculated over the trailing 6-month period	131.65%	22.06%	+109.59%
Volatility (1Y) Calculated over the trailing 1-year period	156.87%	25.32%	+131.55%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	163.39%	26.15%	+137.24%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	163.39%	26.15%	+137.24%

SMCZ vs. MSFD - Expense Ratio Comparison

SMCZ has a 1.29% expense ratio, which is higher than MSFD's 1.06% expense ratio.

Dividends

SMCZ vs. MSFD - Dividend Comparison

SMCZ's dividend yield for the trailing twelve months is around 20.59%, more than MSFD's 2.83% yield.

Position	TTM	2025	2024	2023	2022
MSFD Direxion Daily MSFT Bear 1X Shares	2.83%	3.33%	4.46%	4.43%	0.74%
SMCZ Defiance Daily Target 2X Short SMCI ETF	20.59%	2.03%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both SMCZ and MSFD in my portfolio?

SMCZ and MSFD have a correlation of 0.31, 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 MSFD?

SMCZ has higher volatility (80.07%) compared to MSFD (10.12%). In terms of maximum drawdown, SMCZ dropped -97.40% vs MSFD's -59.90%.

Which ETF is better, SMCZ or MSFD?

On 1-year performance, MSFD leads with 7.43% vs -89.94% for SMCZ. On fees, MSFD is cheaper at 1.06% per year. On volatility, MSFD has been the lower-risk option at 10.12%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, SMCZ or MSFD?

Over the 1-year period, MSFD has performed better with a 7.43% return vs -89.94%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, SMCZ or MSFD?

MSFD is cheaper with a 1.06% expense ratio, compared with 1.29% for SMCZ.

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

SMCZ has the higher dividend yield at 20.59%, compared with 2.83% for MSFD.

What is the main difference between SMCZ and MSFD?

They also come from different issuers: Defiance and Direxion. Their fees differ too: 1.29% for SMCZ and 1.06% for MSFD.

Which has better risk-adjusted returns?

MSFD currently has the higher Sharpe Ratio (0.29 vs -0.57), 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.