SMST vs. QQQD

Last updated Apr 15, 2026

SMST (Defiance Daily Target 2X Short MSTR ETF) and QQQD (Direxion Daily Magnificent 7 Bear 1X Shares) are both Inverse Equities funds. SMST is actively managed, while QQQD is passively managed. Over the past year, SMST returned 11.34% vs -29.49% for QQQD. At 0.46, their price movements are largely independent. SMST charges 1.29%/yr vs 0.57%/yr for QQQD.

Performance

SMST vs. QQQD - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Defiance Daily Target 2X Short MSTR ETF (SMST) and Direxion Daily Magnificent 7 Bear 1X Shares (QQQD). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, SMST achieves a -43.73% return, which is significantly lower than QQQD's 4.00% return.

SMST

• 1D: -7.77%
• 1M: -6.06%
• YTD: -43.73%
• 6M: 65.04%
• 1Y: 11.34%
• 3Y*: —
• 5Y*: —
• 10Y*: —

QQQD

• 1D: -3.00%
• 1M: -6.09%
• YTD: 4.00%
• 6M: -0.89%
• 1Y: -29.49%
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

SMST vs. QQQD - Yearly Performance Comparison

	2026 (YTD)	2025	2024
SMST Defiance Daily Target 2X Short MSTR ETF	-43.73%	-44.36%	-90.90%
QQQD Direxion Daily Magnificent 7 Bear 1X Shares	4.00%	-20.32%	-15.95%

Correlation

The correlation between SMST and QQQD is 0.43, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.43
Correlation (All Time) Calculated using the full available price history since Aug 22, 2024	0.46

Return for Risk

SMST vs. QQQD — Risk / Return Rank

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

SMST

SMST Risk / Return Rank: 10
SMST Sharpe Ratio Rank: 8
SMST Sortino Ratio Rank: 16
SMST Omega Ratio Rank: 16
SMST Calmar Ratio Rank: 4
SMST Martin Ratio Rank: 4

QQQD

QQQD Risk / Return Rank: 1
QQQD Sharpe Ratio Rank: 0
QQQD Sortino Ratio Rank: 1
QQQD Omega Ratio Rank: 1
QQQD Calmar Ratio Rank: 2
QQQD Martin Ratio Rank: 2

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. QQQD - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Defiance Daily Target 2X Short MSTR ETF (SMST) and Direxion Daily Magnificent 7 Bear 1X Shares (QQQD). 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	QQQD	Difference
Sharpe ratio Return per unit of total volatility	0.09	-1.31	+1.40
Sortino ratio Return per unit of downside risk	1.14	-1.91	+3.05
Omega ratio Gain probability vs. loss probability	1.15	0.79	+0.36
Calmar ratio Return relative to maximum drawdown	-0.26	-0.77	+0.51
Martin ratio Return relative to average drawdown	-0.42	-0.97	+0.56
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. QQQD - Sharpe Ratio Comparison

The current SMST Sharpe Ratio is 0.09, which is higher than the QQQD Sharpe Ratio of -1.31. The chart below compares the historical Sharpe Ratios of SMST and QQQD, 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	QQQD	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	0.09	-1.31	+1.40
Sharpe Ratio (All Time) Calculated using the full available price history	-0.53	-0.80	+0.27

Drawdowns

SMST vs. QQQD - Drawdown Comparison

The maximum SMST drawdown since its inception was -99.25%, which is greater than QQQD's maximum drawdown of -47.84%. Use the drawdown chart below to compare losses from any high point for SMST and QQQD.

Drawdown Indicators

	SMST	QQQD	Difference
Max Drawdown Largest peak-to-trough decline	-99.25%	-47.84%	-51.41%
Max Drawdown (1Y) Largest decline over 1 year	-68.45%	-40.04%	-28.41%
Current Drawdown Current decline from peak	-97.79%	-43.77%	-54.02%
Average Drawdown Average peak-to-trough decline	-89.98%	-29.20%	-60.78%
Ulcer Index Depth and duration of drawdowns from previous peaks	42.94%	31.56%	+11.38%

Volatility

SMST vs. QQQD - Volatility Comparison

Defiance Daily Target 2X Short MSTR ETF (SMST) has a higher volatility of 33.71% compared to Direxion Daily Magnificent 7 Bear 1X Shares (QQQD) at 9.05%. This indicates that SMST's price experiences larger fluctuations and is considered to be riskier than QQQD based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	SMST	QQQD	Difference
Volatility (1M) Calculated over the trailing 1-month period	33.71%	9.05%	+24.66%
Volatility (6M) Calculated over the trailing 6-month period	122.68%	15.55%	+107.13%
Volatility (1Y) Calculated over the trailing 1-year period	133.91%	22.59%	+111.32%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	167.88%	27.28%	+140.60%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	167.88%	27.28%	+140.60%

SMST vs. QQQD - Expense Ratio Comparison

SMST has a 1.29% expense ratio, which is higher than QQQD's 0.57% expense ratio.

Dividends

SMST vs. QQQD - Dividend Comparison

SMST has not paid dividends to shareholders, while QQQD's dividend yield for the trailing twelve months is around 3.80%.

	TTM	2025	2024
SMST Defiance Daily Target 2X Short MSTR ETF	0.00%	0.00%	0.00%
QQQD Direxion Daily Magnificent 7 Bear 1X Shares	3.80%	4.33%	5.17%