SMST vs. MSDD

Last updated Jun 24, 2026

SMST (Defiance Daily Target 2X Short MSTR ETF) and MSDD (GraniteShares 2x Short MSTR Daily ETF) are both Inverse Equities funds. Both are actively managed. Over the past year, SMST returned 112.90% vs 69.58% for MSDD. With a 0.97 correlation, they move nearly in lockstep. SMST charges 1.29%/yr vs 1.50%/yr for MSDD.

Performance

SMST vs. MSDD - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Defiance Daily Target 2X Short MSTR ETF (SMST) and GraniteShares 2x Short MSTR Daily ETF (MSDD). 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 MSDD's -48.72% return.

SMST

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

MSDD

• 1D: 0.00%
• 1M: 44.94%
• YTD: -48.72%
• 6M: -45.00%
• 1Y: 69.58%
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

SMST vs. MSDD - Yearly Performance Comparison

	2026 (YTD)	2025
SMST Defiance Daily Target 2X Short MSTR ETF	-32.44%	256.24%
MSDD GraniteShares 2x Short MSTR Daily ETF	-48.72%	274.52%

Correlation

The correlation between SMST and MSDD is 0.97 - these two move nearly in lockstep. At this level, holding both provides almost no diversification benefit. If you already own one, adding the other does little to reduce portfolio risk.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.97
Correlation (All Time) Calculated using the full available price history since Jun 10, 2025	0.97

The correlation between SMST and MSDD has been stable across timeframes, ranging from 0.97 to 0.97 - a consistent structural relationship.

Return for Risk

SMST vs. MSDD — 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

MSDD

MSDD Risk / Return Rank: 24
MSDD Sharpe Ratio Rank: 17
MSDD Sortino Ratio Rank: 32
MSDD Omega Ratio Rank: 33
MSDD Calmar Ratio Rank: 20
MSDD Martin Ratio Rank: 16

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. MSDD - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Defiance Daily Target 2X Short MSTR ETF (SMST) and GraniteShares 2x Short MSTR Daily ETF (MSDD). 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	MSDD	Difference
Sharpe ratio: Return per unit of total volatility	0.79	0.50	+0.29
Sortino ratio: Return per unit of downside risk	1.86	1.61	+0.25
Omega ratio: Gain probability vs. loss probability	1.23	1.21	+0.03
Calmar ratio: Return relative to maximum drawdown	1.33	0.82	+0.51
Martin ratio: Return relative to average drawdown	2.63	1.63	+1.00

SMST vs. MSDD - Sharpe Ratio Comparison

The current SMST Sharpe Ratio is 0.79, which is higher than the MSDD Sharpe Ratio of 0.50. The chart below compares the historical Sharpe Ratios of SMST and MSDD, 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. MSDD - Drawdown Comparison

The maximum SMST drawdown since its inception was -99.25%, which is greater than MSDD's maximum drawdown of -84.91%. Use the drawdown chart below to compare losses from any high point for SMST and MSDD.

Drawdown Indicators

	SMST	MSDD	Difference
Max Drawdown Largest peak-to-trough decline	-99.25%	-84.91%	-14.34%
Max Drawdown (1Y) Largest decline over 1 year	-85.39%	-84.91%	-0.48%
Current Drawdown Current decline from peak	-97.35%	-68.63%	-28.72%
Average Drawdown Average peak-to-trough decline	-90.72%	-31.26%	-59.46%
Ulcer Index Depth and duration of drawdowns from previous peaks	43.37%	43.14%	+0.23%

Volatility

SMST vs. MSDD - Volatility Comparison

Defiance Daily Target 2X Short MSTR ETF (SMST) has a higher volatility of 42.53% compared to GraniteShares 2x Short MSTR Daily ETF (MSDD) at 32.28%. This indicates that SMST's price experiences larger fluctuations and is considered to be riskier than MSDD based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	SMST	MSDD	Difference
Volatility (1M) Calculated over the trailing 1-month period	42.53%	32.28%	+10.25%
Volatility (6M) Calculated over the trailing 6-month period	128.39%	124.65%	+3.74%
Volatility (1Y) Calculated over the trailing 1-year period	144.30%	140.94%	+3.36%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	166.48%	138.85%	+27.63%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	166.48%	138.85%	+27.63%

SMST vs. MSDD - Expense Ratio Comparison

SMST has a 1.29% expense ratio, which is lower than MSDD's 1.50% expense ratio.

Dividends

SMST vs. MSDD - Dividend Comparison

Neither SMST nor MSDD has paid dividends to shareholders.

Tickers have no history of dividend payments

Frequently Asked Questions

Can I hold both SMST and MSDD in my portfolio?

With a correlation of 0.97, SMST and MSDD 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.

Which is riskier, SMST or MSDD?

SMST has higher volatility (42.53%) compared to MSDD (32.28%). In terms of maximum drawdown, SMST dropped -99.25% vs MSDD's -84.91%.

Which ETF is better, SMST or MSDD?

On 1-year performance, SMST leads with 112.90% vs 69.58% for MSDD. On fees, SMST is cheaper at 1.29% per year. On volatility, MSDD has been the lower-risk option at 32.28%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, SMST or MSDD?

Over the 1-year period, SMST has performed better with a 112.90% return vs 69.58%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, SMST or MSDD?

SMST is cheaper with a 1.29% expense ratio, compared with 1.50% for MSDD.

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

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

What is the main difference between SMST and MSDD?

They also come from different issuers: Defiance and GraniteShares. Their fees differ too: 1.29% for SMST and 1.50% for MSDD.

Which has better risk-adjusted returns?

SMST currently has the higher Sharpe Ratio (0.79 vs 0.50), 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.