SMDD vs. TZA
SMDD (ProShares UltraPro Short MidCap400) and TZA (Direxion Daily Small Cap Bear 3X Shares) are both Leveraged Equities funds - SMDD tracks the S&P MidCap 400 Index (-300%) while TZA tracks the Russell 2000 Index (-300%). Both are passively managed. Over the past 10 years, SMDD returned -40.48%/yr vs -43.76%/yr for TZA. Their correlation of 0.94 suggests significant overlap in exposure. SMDD charges 0.95%/yr vs 1.11%/yr for TZA.
Performance
SMDD vs. TZA - Performance Comparison
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Returns By Period
In the year-to-date period, SMDD achieves a -36.27% return, which is significantly higher than TZA's -45.95% return. Over the past 10 years, SMDD has outperformed TZA with an annualized return of -40.48%, while TZA has yielded a comparatively lower -43.76% annualized return.
SMDD
- 1D
- -3.77%
- 1M
- -12.99%
- YTD
- -36.27%
- 6M
- -33.69%
- 1Y
- -51.52%
- 3Y*
- -37.20%
- 5Y*
- -31.93%
- 10Y*
- -40.48%
TZA
- 1D
- -5.85%
- 1M
- -16.77%
- YTD
- -45.95%
- 6M
- -42.86%
- 1Y
- -68.27%
- 3Y*
- -45.09%
- 5Y*
- -32.28%
- 10Y*
- -43.76%
SMDD vs. TZA - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
SMDD ProShares UltraPro Short MidCap400 | -36.27% | -27.46% | -31.02% | -38.37% | 7.69% | -58.01% | -74.71% | -53.34% | 33.50% | -39.87% |
TZA Direxion Daily Small Cap Bear 3X Shares | -45.95% | -40.22% | -32.22% | -41.19% | 30.21% | -50.80% | -80.43% | -53.25% | 25.06% | -38.19% |
Correlation
The correlation between SMDD and TZA is 0.92, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.92 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.94 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.95 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.93 |
Correlation (All Time) Calculated using the full available price history since Feb 11, 2010 | 0.94 |
The correlation between SMDD and TZA has been stable across timeframes, ranging from 0.92 to 0.95 - a consistent structural relationship.
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Return for Risk
SMDD vs. TZA — Risk / Return Rank
SMDD
TZA
SMDD vs. TZA - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for ProShares UltraPro Short MidCap400 (SMDD) and Direxion Daily Small Cap Bear 3X Shares (TZA). 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.
| SMDD | TZA | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.08 | ||
| Sortino ratioReturn per unit of downside risk | +0.49 | ||
| Omega ratioGain probability vs. loss probability | 0.81 | 0.77 | +0.04 |
| Calmar ratioReturn relative to maximum drawdown | -0.99 | -1.00 | +0.01 |
| Martin ratioReturn relative to average drawdown | -1.69 | -1.52 | -0.17 |
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Drawdowns
SMDD vs. TZA - Drawdown Comparison
The maximum SMDD drawdown since its inception was -99.99%, roughly equal to the maximum TZA drawdown of -100.00%. Use the drawdown chart below to compare losses from any high point for SMDD and TZA.
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Drawdown Indicators
| SMDD | TZA | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -99.99% | -100.00% | +0.01% |
Max Drawdown (1Y)Largest decline over 1 year | -52.00% | -68.49% | +16.49% |
Max Drawdown (3Y)Largest decline over 3 years | -81.99% | -88.98% | +6.99% |
Max Drawdown (5Y)Largest decline over 5 years | -87.81% | -91.32% | +3.51% |
Max Drawdown (10Y)Largest decline over 10 years | -99.52% | -99.73% | +0.21% |
Current DrawdownCurrent decline from peak | -99.99% | -100.00% | +0.01% |
Average DrawdownAverage peak-to-trough decline | -92.96% | -97.99% | +5.03% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 30.51% | 44.79% | -14.28% |
Volatility
SMDD vs. TZA - Volatility Comparison
The current volatility for ProShares UltraPro Short MidCap400 (SMDD) is 14.35%, while Direxion Daily Small Cap Bear 3X Shares (TZA) has a volatility of 20.10%. This indicates that SMDD experiences smaller price fluctuations and is considered to be less risky than TZA based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| SMDD | TZA | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 14.35% | 20.10% | -5.75% |
Volatility (6M)Calculated over the trailing 6-month period | 35.45% | 42.87% | -7.42% |
Volatility (1Y)Calculated over the trailing 1-year period | 47.55% | 58.54% | -10.99% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 58.92% | 67.69% | -8.77% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 63.41% | 69.06% | -5.65% |
SMDD vs. TZA - Expense Ratio Comparison
SMDD has a 0.95% expense ratio, which is lower than TZA's 1.11% expense ratio.
Dividends
SMDD vs. TZA - Dividend Comparison
SMDD's dividend yield for the trailing twelve months is around 7.32%, more than TZA's 5.31% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 |
|---|---|---|---|---|---|---|---|---|---|
SMDD ProShares UltraPro Short MidCap400 | 7.32% | 4.96% | 4.09% | 3.86% | 0.14% | 0.00% | 0.13% | 1.51% | 0.09% |
TZA Direxion Daily Small Cap Bear 3X Shares | 5.31% | 5.08% | 5.40% | 5.49% | 0.00% | 0.00% | 1.21% | 1.56% | 0.63% |
Frequently Asked Questions
With a correlation of 0.92, SMDD and TZA 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.
TZA has higher volatility (20.10%) compared to SMDD (14.35%). In terms of maximum drawdown, SMDD dropped -99.99% vs TZA's -100.00%.
On 10-year performance, SMDD leads with -40.48% vs -43.76% for TZA. On fees, SMDD is cheaper at 0.95% per year. On volatility, SMDD has been the lower-risk option at 14.35%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, SMDD has performed better with a -40.48% return vs -43.76%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
SMDD is cheaper with a 0.95% expense ratio, compared with 1.11% for TZA.
SMDD has the higher dividend yield at 7.32%, compared with 5.31% for TZA.
SMDD tracks S&P MidCap 400 Index (-300%), while TZA tracks Russell 2000 Index (-300%). They also come from different issuers: ProShares and Direxion. Their fees differ too: 0.95% for SMDD and 1.11% for TZA.
SMDD currently has the higher Sharpe Ratio (-1.09 vs -1.17), 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.
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