SMST vs. EFZ

Last updated Jun 4, 2026

SMST (Defiance Daily Target 2X Short MSTR ETF) and EFZ (ProShares Short MSCI EAFE) are both Inverse Equities funds. SMST is actively managed, while EFZ is passively managed. Over the past year, SMST returned 73.40% vs -14.24% for EFZ. At a 0.31 correlation, their price movements are largely independent. SMST charges 1.29%/yr vs 0.95%/yr for EFZ.

Performance

SMST vs. EFZ - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Defiance Daily Target 2X Short MSTR ETF (SMST) and ProShares Short MSCI EAFE (EFZ). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, SMST achieves a -49.49% return, which is significantly lower than EFZ's -6.98% return.

SMST

• 1D: 13.96%
• 1M: 85.04%
• YTD: -49.49%
• 6M: -27.60%
• 1Y: 73.40%
• 3Y*: —
• 5Y*: —
• 10Y*: —

EFZ

• 1D: 0.88%
• 1M: -3.23%
• YTD: -6.98%
• 6M: -8.53%
• 1Y: -14.24%
• 3Y*: -9.77%
• 5Y*: -5.38%
• 10Y*: -8.29%

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

SMST vs. EFZ - Yearly Performance Comparison

	2026 (YTD)	2025	2024
SMST Defiance Daily Target 2X Short MSTR ETF	-49.49%	-44.36%	-90.90%
EFZ ProShares Short MSCI EAFE	-6.98%	-20.92%	9.13%

Correlation

The correlation between SMST and EFZ 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 Aug 22, 2024	0.31

Return for Risk

SMST vs. EFZ — Risk / Return Rank

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

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

EFZ

EFZ Risk / Return Rank: 2
EFZ Sharpe Ratio Rank: 2
EFZ Sortino Ratio Rank: 3
EFZ Omega Ratio Rank: 3
EFZ Calmar Ratio Rank: 2
EFZ 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. EFZ - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Defiance Daily Target 2X Short MSTR ETF (SMST) and ProShares Short MSCI EAFE (EFZ). 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.

	SMST	EFZ	Difference
Sharpe ratio: Return per unit of total volatility	0.52	-0.88	+1.40
Sortino ratio: Return per unit of downside risk	1.63	-1.18	+2.81
Omega ratio: Gain probability vs. loss probability	1.21	0.86	+0.34
Calmar ratio: Return relative to maximum drawdown	0.86	-0.82	+1.69
Martin ratio: Return relative to average drawdown	1.81	-1.47	+3.28
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

SMST vs. EFZ - Sharpe Ratio Comparison

The current SMST Sharpe Ratio is 0.52, which is higher than the EFZ Sharpe Ratio of -0.88. The chart below compares the historical Sharpe Ratios of SMST and EFZ, 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

	SMST	EFZ	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	0.52	-0.88	+1.40
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	—	-0.32	—
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	—	-0.48	—
Sharpe Ratio (All Time) Calculated using the full available price history	-0.52	-0.34	-0.18

Drawdowns

SMST vs. EFZ - Drawdown Comparison

The maximum SMST drawdown since its inception was -99.25%, which is greater than EFZ's maximum drawdown of -88.08%. Use the drawdown chart below to compare losses from any high point for SMST and EFZ.

Drawdown Indicators

	SMST	EFZ	Difference
Max Drawdown Largest peak-to-trough decline	-99.25%	-88.08%	-11.17%
Max Drawdown (1Y) Largest decline over 1 year	-85.39%	-17.36%	-68.03%
Max Drawdown (3Y) Largest decline over 3 years	—	-35.42%	—
Max Drawdown (5Y) Largest decline over 5 years	—	-43.77%	—
Max Drawdown (10Y) Largest decline over 10 years	—	-61.88%	—
Current Drawdown Current decline from peak	-98.02%	-87.82%	-10.20%
Average Drawdown Average peak-to-trough decline	-90.67%	-67.08%	-23.59%
Ulcer Index Depth and duration of drawdowns from previous peaks	40.73%	9.71%	+31.02%

Volatility

SMST vs. EFZ - Volatility Comparison

Defiance Daily Target 2X Short MSTR ETF (SMST) has a higher volatility of 37.33% compared to ProShares Short MSCI EAFE (EFZ) at 5.19%. This indicates that SMST's price experiences larger fluctuations and is considered to be riskier than EFZ based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	SMST	EFZ	Difference
Volatility (1M) Calculated over the trailing 1-month period	37.33%	5.19%	+32.14%
Volatility (6M) Calculated over the trailing 6-month period	126.48%	13.49%	+112.99%
Volatility (1Y) Calculated over the trailing 1-year period	140.93%	16.35%	+124.58%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	166.79%	16.72%	+150.07%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	166.79%	17.38%	+149.41%

SMST vs. EFZ - Expense Ratio Comparison

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

Dividends

SMST vs. EFZ - Dividend Comparison

SMST has not paid dividends to shareholders, while EFZ's dividend yield for the trailing twelve months is around 4.04%.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018
EFZ ProShares Short MSCI EAFE	4.04%	4.55%	5.29%	4.66%	0.57%	0.00%	0.04%	1.56%	0.34%
SMST Defiance Daily Target 2X Short MSTR ETF	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both SMST and EFZ in my portfolio?

SMST and EFZ 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, SMST or EFZ?

SMST has higher volatility (37.33%) compared to EFZ (5.19%). In terms of maximum drawdown, SMST dropped -99.25% vs EFZ's -88.08%.

Which ETF is better, SMST or EFZ?

On 1-year performance, SMST leads with 73.40% vs -14.24% for EFZ. On fees, EFZ is cheaper at 0.95% per year. On volatility, EFZ has been the lower-risk option at 5.19%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, SMST or EFZ?

Over the 1-year period, SMST has performed better with a 73.40% return vs -14.24%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, SMST or EFZ?

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

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

EFZ has the higher dividend yield at 4.04%, compared with 0.00% for SMST.

What is the main difference between SMST and EFZ?

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

Which has better risk-adjusted returns?

SMST currently has the higher Sharpe Ratio (0.52 vs -0.88), 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.