SMCZ vs. SMST

Last updated Jun 4, 2026

SMCZ (Defiance Daily Target 2X Short SMCI ETF) and SMST (Defiance Daily Target 2X Short MSTR ETF) are both Inverse Equities funds from Defiance. Both are actively managed. Over the past year, SMCZ returned -89.94% vs 73.40% for SMST. At a 0.38 correlation, their price movements are largely independent. Both charge a 1.29% expense ratio.

Performance

SMCZ vs. SMST - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Defiance Daily Target 2X Short SMCI ETF (SMCZ) 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, SMCZ achieves a -90.14% return, which is significantly lower than SMST's -49.49% return.

SMCZ

• 1D: 10.93%
• 1M: -77.87%
• YTD: -90.14%
• 6M: -87.78%
• 1Y: -89.94%
• 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)

SMCZ vs. SMST - Yearly Performance Comparison

	2026 (YTD)	2025
SMCZ Defiance Daily Target 2X Short SMCI ETF	-90.14%	-61.04%
SMST Defiance Daily Target 2X Short MSTR ETF	-49.49%	29.25%

Correlation

The correlation between SMCZ and SMST is 0.41, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.41
Correlation (All Time) Calculated using the full available price history since Apr 2, 2025	0.38

Return for Risk

SMCZ vs. SMST — 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

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.

SMCZ vs. SMST - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Defiance Daily Target 2X Short SMCI ETF (SMCZ) 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.

	SMCZ	SMST	Difference
Sharpe ratio: Return per unit of total volatility	-0.57	0.52	-1.10
Sortino ratio: Return per unit of downside risk	-0.94	1.63	-2.57
Omega ratio: Gain probability vs. loss probability	0.88	1.21	-0.33
Calmar ratio: Return relative to maximum drawdown	-0.98	0.86	-1.85
Martin ratio: Return relative to average drawdown	-2.00	1.81	-3.81
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. SMST - Sharpe Ratio Comparison

The current SMCZ Sharpe Ratio is -0.57, which is lower than the SMST Sharpe Ratio of 0.52. The chart below compares the historical Sharpe Ratios of SMCZ 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

	SMCZ	SMST	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	-0.57	0.52	-1.10
Sharpe Ratio (All Time) Calculated using the full available price history	-0.58	-0.52	-0.05

Drawdowns

SMCZ vs. SMST - Drawdown Comparison

The maximum SMCZ drawdown since its inception was -97.40%, roughly equal to the maximum SMST drawdown of -99.25%. Use the drawdown chart below to compare losses from any high point for SMCZ and SMST.

Drawdown Indicators

	SMCZ	SMST	Difference
Max Drawdown Largest peak-to-trough decline	-97.40%	-99.25%	+1.85%
Max Drawdown (1Y) Largest decline over 1 year	-91.74%	-85.39%	-6.35%
Current Drawdown Current decline from peak	-97.12%	-98.02%	+0.90%
Average Drawdown Average peak-to-trough decline	-75.71%	-90.67%	+14.96%
Ulcer Index Depth and duration of drawdowns from previous peaks	44.99%	40.73%	+4.26%

Volatility

SMCZ vs. SMST - Volatility Comparison

Defiance Daily Target 2X Short SMCI ETF (SMCZ) has a higher volatility of 80.07% compared to Defiance Daily Target 2X Short MSTR ETF (SMST) at 37.33%. This indicates that SMCZ'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

	SMCZ	SMST	Difference
Volatility (1M) Calculated over the trailing 1-month period	80.07%	37.33%	+42.74%
Volatility (6M) Calculated over the trailing 6-month period	131.65%	126.48%	+5.17%
Volatility (1Y) Calculated over the trailing 1-year period	156.87%	140.93%	+15.94%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	163.39%	166.79%	-3.40%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	163.39%	166.79%	-3.40%

SMCZ vs. SMST - Expense Ratio Comparison

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

Dividends

SMCZ vs. SMST - Dividend Comparison

SMCZ's dividend yield for the trailing twelve months is around 20.59%, while SMST has not paid dividends to shareholders.

Position	TTM	2025
SMCZ Defiance Daily Target 2X Short SMCI ETF	20.59%	2.03%
SMST Defiance Daily Target 2X Short MSTR ETF	0.00%	0.00%

Frequently Asked Questions

Can I hold both SMCZ and SMST in my portfolio?

SMCZ and SMST have a correlation of 0.41, 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 SMST?

SMCZ has higher volatility (80.07%) compared to SMST (37.33%). In terms of maximum drawdown, SMCZ dropped -97.40% vs SMST's -99.25%.

Which ETF is better, SMCZ or SMST?

On 1-year performance, SMST leads with 73.40% vs -89.94% for SMCZ. 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, SMCZ or SMST?

Over the 1-year period, SMST has performed better with a 73.40% 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 SMST?

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

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

SMCZ has the higher dividend yield at 20.59%, compared with 0.00% for SMST.

Which has better risk-adjusted returns?

SMST currently has the higher Sharpe Ratio (0.52 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.