SMST vs. BERZ

Last updated Jun 24, 2026

SMST (Defiance Daily Target 2X Short MSTR ETF) and BERZ (MicroSectors Solactive FANG & Innovation -3X Inverse Leveraged ETN) are both Inverse Equities funds. SMST is actively managed, while BERZ is passively managed. Over the past year, SMST returned 112.90% vs -80.66% for BERZ. A 0.54 correlation means they provide meaningful diversification when combined. SMST charges 1.29%/yr vs 0.95%/yr for BERZ.

Performance

SMST vs. BERZ - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Defiance Daily Target 2X Short MSTR ETF (SMST) and MicroSectors Solactive FANG & Innovation -3X Inverse Leveraged ETN (BERZ). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, SMST achieves a -32.44% return, which is significantly higher than BERZ's -55.66% return.

SMST

• 1D: 9.85%
• 1M: 101.03%
• YTD: -32.44%
• 6M: -27.49%
• 1Y: 112.90%
• 3Y*: —
• 5Y*: —
• 10Y*: —

BERZ

• 1D: 11.73%
• 1M: 4.71%
• YTD: -55.66%
• 6M: -53.62%
• 1Y: -80.66%
• 3Y*: -74.69%
• 5Y*: —
• 10Y*: —

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

SMST vs. BERZ - Yearly Performance Comparison

	2026 (YTD)	2025	2024
SMST Defiance Daily Target 2X Short MSTR ETF	-32.44%	-44.36%	-91.71%
BERZ MicroSectors Solactive FANG & Innovation -3X Inverse Leveraged ETN	-55.66%	-78.81%	-30.02%

Correlation

The correlation between SMST and BERZ is 0.57, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.57
Correlation (All Time) Calculated using the full available price history since Aug 21, 2024	0.54

The correlation between SMST and BERZ has been stable across timeframes, ranging from 0.54 to 0.57 - a consistent structural relationship.

Return for Risk

SMST vs. BERZ — Risk / Return Rank

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

SMST

SMST Risk / Return Rank: 30
SMST Sharpe Ratio Rank: 24
SMST Sortino Ratio Rank: 39
SMST Omega Ratio Rank: 38
SMST Calmar Ratio Rank: 29
SMST Martin Ratio Rank: 22

BERZ

BERZ Risk / Return Rank: 1
BERZ Sharpe Ratio Rank: 1
BERZ Sortino Ratio Rank: 0
BERZ Omega Ratio Rank: 0
BERZ Calmar Ratio Rank: 1
BERZ Martin Ratio Rank: 1

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.

SMST vs. BERZ - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Defiance Daily Target 2X Short MSTR ETF (SMST) and MicroSectors Solactive FANG & Innovation -3X Inverse Leveraged ETN (BERZ). 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.

	SMST	BERZ	Difference
Sharpe ratio: Return per unit of total volatility	0.79	-0.99	+1.78
Sortino ratio: Return per unit of downside risk	1.86	-2.23	+4.09
Omega ratio: Gain probability vs. loss probability	1.23	0.77	+0.47
Calmar ratio: Return relative to maximum drawdown	1.33	-0.96	+2.28
Martin ratio: Return relative to average drawdown	2.63	-1.56	+4.19

SMST vs. BERZ - Sharpe Ratio Comparison

The current SMST Sharpe Ratio is 0.79, which is higher than the BERZ Sharpe Ratio of -0.99. The chart below compares the historical Sharpe Ratios of SMST and BERZ, 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

SMST vs. BERZ - Drawdown Comparison

The maximum SMST drawdown since its inception was -99.25%, roughly equal to the maximum BERZ drawdown of -99.80%. Use the drawdown chart below to compare losses from any high point for SMST and BERZ.

Drawdown Indicators

	SMST	BERZ	Difference
Max Drawdown Largest peak-to-trough decline	-99.25%	-99.80%	+0.55%
Max Drawdown (1Y) Largest decline over 1 year	-85.39%	-84.60%	-0.79%
Max Drawdown (3Y) Largest decline over 3 years	—	-98.87%	—
Current Drawdown Current decline from peak	-97.35%	-99.73%	+2.38%
Average Drawdown Average peak-to-trough decline	-90.72%	-71.81%	-18.91%
Ulcer Index Depth and duration of drawdowns from previous peaks	43.37%	54.31%	-10.94%

Volatility

SMST vs. BERZ - Volatility Comparison

Defiance Daily Target 2X Short MSTR ETF (SMST) has a higher volatility of 42.53% compared to MicroSectors Solactive FANG & Innovation -3X Inverse Leveraged ETN (BERZ) at 34.10%. This indicates that SMST's price experiences larger fluctuations and is considered to be riskier than BERZ based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	SMST	BERZ	Difference
Volatility (1M) Calculated over the trailing 1-month period	42.53%	34.10%	+8.43%
Volatility (6M) Calculated over the trailing 6-month period	128.39%	63.77%	+64.62%
Volatility (1Y) Calculated over the trailing 1-year period	144.30%	81.37%	+62.93%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	166.48%	92.80%	+73.68%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	166.48%	92.80%	+73.68%

SMST vs. BERZ - Expense Ratio Comparison

SMST has a 1.29% expense ratio, which is higher than BERZ's 0.95% expense ratio.

Dividends

SMST vs. BERZ - Dividend Comparison

Neither SMST nor BERZ has paid dividends to shareholders.

Tickers have no history of dividend payments

Frequently Asked Questions

Can I hold both SMST and BERZ in my portfolio?

SMST and BERZ have a correlation of 0.57, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, SMST or BERZ?

SMST has higher volatility (42.53%) compared to BERZ (34.10%). In terms of maximum drawdown, SMST dropped -99.25% vs BERZ's -99.80%.

Which ETF is better, SMST or BERZ?

On 1-year performance, SMST leads with 112.90% vs -80.66% for BERZ. On fees, BERZ is cheaper at 0.95% per year. On volatility, BERZ has been the lower-risk option at 34.10%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, SMST or BERZ?

Over the 1-year period, SMST has performed better with a 112.90% return vs -80.66%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, SMST or BERZ?

BERZ is cheaper with a 0.95% expense ratio, compared with 1.29% for SMST.

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

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

What is the main difference between SMST and BERZ?

They also come from different issuers: Defiance and BMO. Their fees differ too: 1.29% for SMST and 0.95% for BERZ.

Which has better risk-adjusted returns?

SMST currently has the higher Sharpe Ratio (0.79 vs -0.99), 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.