SMST vs. IWC

Last updated Jul 16, 2026

SMST (Defiance Daily Target 2X Short MSTR ETF) and IWC (iShares Micro-Cap ETF) are both exchange-traded funds - SMST is a Inverse Equities fund actively managed by Defiance, while IWC is a Small Cap Blend Equities fund tracking the Russell Microcap Index. SMST is actively managed, while IWC is passively managed. Over the past year, SMST returned 213.47% vs 47.18% for IWC. At a correlation of -0.49, they often move in opposite directions. SMST charges 1.29%/yr vs 0.60%/yr for IWC.

Performance

SMST vs. IWC - Performance Comparison

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

Returns By Period

In the year-to-date period, SMST achieves a -36.56% return, which is significantly lower than IWC's 22.59% return.

SMST

• 1D: 0.19%
• 1M: 44.40%
• 6M: -6.67%
• YTD: -36.56%
• 1Y: 213.47%
• 3Y*: —
• 5Y*: —
• 10Y*: —

IWC

• 1D: -0.76%
• 1M: 2.38%
• 6M: 13.24%
• YTD: 22.59%
• 1Y: 47.18%
• 3Y*: 20.94%
• 5Y*: 7.55%
• 10Y*: 11.28%

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

SMST vs. IWC - Yearly Performance Comparison

	2026 (YTD)	2025	2024
SMST Defiance Daily Target 2X Short MSTR ETF	-36.56%	-44.36%	-91.71%
IWC iShares Micro-Cap ETF	22.59%	22.45%	9.55%

Correlation

The correlation between SMST and IWC is -0.52, meaning they tend to move in opposite directions. This is especially valuable for risk management - when one declines, the other has historically tended to hold steady or rise.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	-0.52
Correlation (All Time) Calculated using the full available price history since Aug 21, 2024	-0.49

The correlation between SMST and IWC has been stable across timeframes, ranging from -0.52 to -0.49 - a consistent structural relationship.

Return for Risk

SMST vs. IWC — Risk / Return Rank

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

SMST

SMST Risk / Return Rank: 53
SMST Sharpe Ratio Rank: 50
SMST Sortino Ratio Rank: 57
SMST Omega Ratio Rank: 58
SMST Calmar Ratio Rank: 62
SMST Martin Ratio Rank: 38

IWC

IWC Risk / Return Rank: 77
IWC Sharpe Ratio Rank: 77
IWC Sortino Ratio Rank: 73
IWC Omega Ratio Rank: 66
IWC Calmar Ratio Rank: 86
IWC Martin Ratio Rank: 81

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. IWC - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Defiance Daily Target 2X Short MSTR ETF (SMST) and iShares Micro-Cap ETF (IWC). 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	IWC	Difference
Sharpe ratio: Return per unit of total volatility	1.44	1.96	-0.52
Sortino ratio: Return per unit of downside risk	2.25	2.64	-0.39
Omega ratio: Gain probability vs. loss probability	1.29	1.32	-0.02
Calmar ratio: Return relative to maximum drawdown	2.52	3.81	-1.30
Martin ratio: Return relative to average drawdown	4.83	12.32	-7.49

SMST vs. IWC - Sharpe Ratio Comparison

The current SMST Sharpe Ratio is 1.44, which is comparable to the IWC Sharpe Ratio of 1.96. The chart below compares the historical Sharpe Ratios of SMST and IWC, 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. IWC - Drawdown Comparison

The maximum SMST drawdown since its inception was -99.25%, which is greater than IWC's maximum drawdown of -64.61%. Use the drawdown chart below to compare losses from any high point for SMST and IWC.

Drawdown Indicators

	SMST	IWC	Difference
Max Drawdown Largest peak-to-trough decline	-99.25%	-64.61%	-34.64%
Max Drawdown (1Y) Largest decline over 1 year	-85.39%	-12.43%	-72.96%
Max Drawdown (3Y) Largest decline over 3 years	—	-29.46%	—
Max Drawdown (5Y) Largest decline over 5 years	—	-40.61%	—
Max Drawdown (10Y) Largest decline over 10 years	—	-47.21%	—
Current Drawdown Current decline from peak	-97.51%	-3.89%	-93.62%
Average Drawdown Average peak-to-trough decline	-90.92%	-15.20%	-75.72%
Ulcer Index Depth and duration of drawdowns from previous peaks	44.41%	3.84%	+40.57%

Volatility

SMST vs. IWC - Volatility Comparison

Defiance Daily Target 2X Short MSTR ETF (SMST) has a higher volatility of 56.99% compared to iShares Micro-Cap ETF (IWC) at 4.79%. This indicates that SMST's price experiences larger fluctuations and is considered to be riskier than IWC based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	SMST	IWC	Difference
Volatility (1M) Calculated over the trailing 1-month period	56.99%	4.79%	+52.20%
Volatility (6M) Calculated over the trailing 6-month period	135.90%	18.28%	+117.62%
Volatility (1Y) Calculated over the trailing 1-year period	149.26%	24.14%	+125.12%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	167.61%	24.52%	+143.09%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	167.61%	24.46%	+143.15%

SMST vs. IWC - Expense Ratio Comparison

SMST has a 1.29% expense ratio, which is higher than IWC's 0.60% expense ratio.

Dividends

SMST vs. IWC - Dividend Comparison

SMST has not paid dividends to shareholders, while IWC's dividend yield for the trailing twelve months is around 0.98%.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
IWC iShares Micro-Cap ETF	0.98%	1.10%	1.06%	1.17%	1.18%	0.78%	0.98%	1.19%	1.01%	1.09%	1.16%	1.49%
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%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both SMST and IWC in my portfolio?

SMST and IWC have a correlation of -0.52, 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 IWC?

SMST has higher volatility (56.99%) compared to IWC (4.79%). In terms of maximum drawdown, SMST dropped -99.25% vs IWC's -64.61%.

Which ETF is better, SMST or IWC?

On 1-year performance, SMST leads with 213.47% vs 47.18% for IWC. On fees, IWC is cheaper at 0.60% per year. On volatility, IWC has been the lower-risk option at 4.79%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, SMST or IWC?

Over the 1-year period, SMST has performed better with a 213.47% return vs 47.18%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, SMST or IWC?

IWC is cheaper with a 0.60% expense ratio, compared with 1.29% for SMST.

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

IWC has the higher dividend yield at 0.98%, compared with 0.00% for SMST.

What is the main difference between SMST and IWC?

SMST is categorized as Inverse Equities, while IWC is Small Cap Blend Equities. They also come from different issuers: Defiance and iShares. Their fees differ too: 1.29% for SMST and 0.60% for IWC.

Which has better risk-adjusted returns?

IWC currently has the higher Sharpe Ratio (1.96 vs 1.44), 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.