SMST vs. MSTX

Last updated Jun 24, 2026

SMST (Defiance Daily Target 2X Short MSTR ETF) and MSTX (Defiance Daily Target 2X Long MSTR ETF) are both exchange-traded funds - SMST is a Inverse Equities fund actively managed by Defiance, while MSTX is a Leveraged Equities fund actively managed by Defiance. Both are actively managed. Over the past year, SMST returned 112.90% vs -96.70% for MSTX. At a correlation of -1.00, they often move in opposite directions. Both charge a 1.29% expense ratio.

Performance

SMST vs. MSTX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Defiance Daily Target 2X Short MSTR ETF (SMST) and Defiance Daily Target 2X Long MSTR ETF (MSTX). 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 MSTX's -71.19% return.

SMST

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

MSTX

• 1D: -10.71%
• 1M: -61.25%
• YTD: -71.19%
• 6M: -73.53%
• 1Y: -96.70%
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

SMST vs. MSTX - Yearly Performance Comparison

	2026 (YTD)	2025	2024
SMST Defiance Daily Target 2X Short MSTR ETF	-32.44%	-44.36%	-91.71%
MSTX Defiance Daily Target 2X Long MSTR ETF	-71.19%	-89.06%	131.70%

Correlation

The correlation between SMST and MSTX is -1.00, 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	-1.00
Correlation (All Time) Calculated using the full available price history since Aug 21, 2024	-1.00

The correlation between SMST and MSTX has been stable across timeframes, ranging from -1.00 to -1.00 - a consistent structural relationship.

Return for Risk

SMST vs. MSTX — 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

MSTX

MSTX Risk / Return Rank: 2
MSTX Sharpe Ratio Rank: 4
MSTX Sortino Ratio Rank: 0
MSTX Omega Ratio Rank: 1
MSTX Calmar Ratio Rank: 1
MSTX Martin Ratio Rank: 3

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. MSTX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Defiance Daily Target 2X Short MSTR ETF (SMST) and Defiance Daily Target 2X Long MSTR ETF (MSTX). 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	MSTX	Difference
Sharpe ratio: Return per unit of total volatility	0.79	-0.67	+1.46
Sortino ratio: Return per unit of downside risk	1.86	-2.26	+4.12
Omega ratio: Gain probability vs. loss probability	1.23	0.76	+0.47
Calmar ratio: Return relative to maximum drawdown	1.33	-0.99	+2.32
Martin ratio: Return relative to average drawdown	2.63	-1.23	+3.86

SMST vs. MSTX - Sharpe Ratio Comparison

The current SMST Sharpe Ratio is 0.79, which is higher than the MSTX Sharpe Ratio of -0.67. The chart below compares the historical Sharpe Ratios of SMST and MSTX, 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. MSTX - Drawdown Comparison

The maximum SMST drawdown since its inception was -99.25%, roughly equal to the maximum MSTX drawdown of -99.11%. Use the drawdown chart below to compare losses from any high point for SMST and MSTX.

Drawdown Indicators

	SMST	MSTX	Difference
Max Drawdown Largest peak-to-trough decline	-99.25%	-99.11%	-0.14%
Max Drawdown (1Y) Largest decline over 1 year	-85.39%	-97.76%	+12.37%
Current Drawdown Current decline from peak	-97.35%	-99.11%	+1.76%
Average Drawdown Average peak-to-trough decline	-90.72%	-70.60%	-20.12%
Ulcer Index Depth and duration of drawdowns from previous peaks	43.37%	78.39%	-35.02%

Volatility

SMST vs. MSTX - Volatility Comparison

The current volatility for Defiance Daily Target 2X Short MSTR ETF (SMST) is 42.53%, while Defiance Daily Target 2X Long MSTR ETF (MSTX) has a volatility of 44.91%. This indicates that SMST experiences smaller price fluctuations and is considered to be less risky than MSTX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	SMST	MSTX	Difference
Volatility (1M) Calculated over the trailing 1-month period	42.53%	44.91%	-2.38%
Volatility (6M) Calculated over the trailing 6-month period	128.39%	114.95%	+13.44%
Volatility (1Y) Calculated over the trailing 1-year period	144.30%	143.60%	+0.70%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	166.48%	167.05%	-0.57%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	166.48%	167.05%	-0.57%

SMST vs. MSTX - Expense Ratio Comparison

Both SMST and MSTX have an expense ratio of 1.29%.

Dividends

SMST vs. MSTX - Dividend Comparison

Neither SMST nor MSTX has paid dividends to shareholders.

Position	TTM	2025	2024
MSTX Defiance Daily Target 2X Long MSTR ETF	0.00%	0.00%	41.01%
SMST Defiance Daily Target 2X Short MSTR ETF	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both SMST and MSTX in my portfolio?

SMST and MSTX have a correlation of -1.00, 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 MSTX?

MSTX has higher volatility (44.91%) compared to SMST (42.53%). In terms of maximum drawdown, SMST dropped -99.25% vs MSTX's -99.11%.

Which ETF is better, SMST or MSTX?

On 1-year performance, SMST leads with 112.90% vs -96.70% for MSTX. Both ETFs have the same 1.29% expense ratio. On volatility, SMST has been the lower-risk option at 42.53%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, SMST or MSTX?

Over the 1-year period, SMST has performed better with a 112.90% return vs -96.70%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, SMST or MSTX?

SMST and MSTX have the same expense ratio: 1.29% per year.

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

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

What is the main difference between SMST and MSTX?

SMST is categorized as Inverse Equities, while MSTX is Leveraged Equities.

Which has better risk-adjusted returns?

SMST currently has the higher Sharpe Ratio (0.79 vs -0.67), 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.