SMST vs. SPXS

Last updated Aug 4, 2026

SMST (Defiance Daily Target 2X Short MSTR ETF) and SPXS (Direxion Daily S&P 500 Bear 3X Shares) are both Inverse Equities funds. SMST is actively managed, while SPXS is passively managed. Over the past year, SMST returned 121.46% vs -43.54% for SPXS. Their 0.47 correlation means their historical movements had little consistent relationship. SMST charges 1.29%/yr vs 1.08%/yr for SPXS.

Performance

SMST vs. SPXS - 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 S&P 500 Bear 3X Shares (SPXS). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, SMST achieves a -37.72% return, which is significantly lower than SPXS's -26.94% return.

SMST

• 1D: -3.03%
• 1M: 2.28%
• 6M: -39.60%
• YTD: -37.72%
• 1Y: 121.46%
• 3Y*: —
• 5Y*: —
• 10Y*: —
• ALL TIME*: -83.81%

SPXS

• 1D: -4.25%
• 1M: -4.72%
• 6M: -23.08%
• YTD: -26.94%
• 1Y: -43.54%
• 3Y*: -40.76%
• 5Y*: -33.22%
• 10Y*: -41.26%
• ALL TIME*: -44.80%

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

Liquidity Comparison

Position	Avg. Volume Value (2W)	Avg. Volume Value (1M)	Avg. Volume Value (3M)
SMST Defiance Daily Target 2X Short MSTR ETF	$15.12M	$14.46M	$17.51M
SPXS Direxion Daily S&P 500 Bear 3X Shares	$311.03M	$277.03M	$339.25M

SMST vs. SPXS - Yearly Performance Comparison

	2026 (YTD)	2025	2024
SMST Defiance Daily Target 2X Short MSTR ETF	-37.72%	-44.36%	-91.71%
SPXS Direxion Daily S&P 500 Bear 3X Shares	-26.94%	-41.53%	-11.95%

Correlation

The correlation between SMST and SPXS is 0.50, which is low. Their historical price movements had little consistent relationship.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	0.50
Correlation (All Time) Calculated using the full available price history since Aug 21, 2024	0.47

Return for Risk

SMST vs. SPXS — Risk / Return Rank

Compare historical risk-adjusted metric ranks over the past 12 months.

SMST

SMST Risk / Return Rank: 40
SMST Sharpe Ratio Rank: 32
SMST Sortino Ratio Rank: 50
SMST Omega Ratio Rank: 50
SMST Calmar Ratio Rank: 39
SMST Martin Ratio Rank: 29

SPXS

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

The rank (0–100) uses a weighted average of the Sharpe, Sortino, Omega, Calmar, and Martin percentile ranks for the trailing 12 months. Higher means stronger historical risk-adjusted performance within the peer group.

SMST vs. SPXS - 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 S&P 500 Bear 3X Shares (SPXS). 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	SPXS	Difference
Sharpe ratio: Return per unit of total volatility	0.81	-1.14	+1.95
Sortino ratio: Return per unit of downside risk	1.89	-1.79	+3.68
Omega ratio: Gain probability vs. loss probability	1.24	0.81	+0.43
Calmar ratio: Return relative to maximum drawdown	1.43	-1.04	+2.47
Martin ratio: Return relative to average drawdown	2.62	-1.74	+4.37

SMST vs. SPXS - Sharpe Ratio Comparison

The current SMST Sharpe Ratio is 0.81, which is higher than the SPXS Sharpe Ratio of -1.14. The chart below compares the historical Sharpe Ratios of SMST and SPXS, 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. SPXS - Drawdown Comparison

The maximum SMST drawdown since its inception was -99.25%, roughly equal to the maximum SPXS drawdown of -100.00%. Use the drawdown chart below to compare losses from any high point for SMST and SPXS.

Drawdown Indicators

	SMST	SPXS	Difference
Max Drawdown Largest peak-to-trough decline	-99.25%	-100.00%	+0.75%
Max Drawdown (1Y) Largest decline over 1 year	-85.39%	-42.15%	-43.24%
Max Drawdown (3Y) Largest decline over 3 years	—	-84.13%	—
Max Drawdown (5Y) Largest decline over 5 years	—	-90.11%	—
Max Drawdown (10Y) Largest decline over 10 years	—	-99.56%	—
Current Drawdown Current decline from peak	-97.55%	-100.00%	+2.45%
Average Drawdown Average peak-to-trough decline	-91.09%	-96.32%	+5.23%
Ulcer Index Depth and duration of drawdowns from previous peaks	46.51%	26.84%	+19.67%

Volatility

SMST vs. SPXS - Volatility Comparison

Defiance Daily Target 2X Short MSTR ETF (SMST) has a higher volatility of 34.07% compared to Direxion Daily S&P 500 Bear 3X Shares (SPXS) at 11.58%. This indicates that SMST's price experiences larger fluctuations and is considered to be riskier than SPXS based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	SMST	SPXS	Difference
Volatility (1M) Calculated over the trailing 1-month period	34.07%	11.58%	+22.49%
Volatility (6M) Calculated over the trailing 6-month period	134.96%	30.75%	+104.21%
Volatility (1Y) Calculated over the trailing 1-year period	150.32%	38.54%	+111.78%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	166.60%	50.81%	+115.79%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	166.60%	53.61%	+112.99%

SMST vs. SPXS - Expense Ratio Comparison

SMST has a 1.29% expense ratio, which is higher than SPXS's 1.08% expense ratio.

Dividends

SMST vs. SPXS - Dividend Comparison

SMST has not paid dividends to shareholders, while SPXS's dividend yield for the trailing twelve months is around 4.65%.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018
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%
SPXS Direxion Daily S&P 500 Bear 3X Shares	4.65%	4.93%	6.18%	5.66%	0.00%	0.00%	0.51%	1.74%	0.58%

Frequently Asked Questions

Can I hold both SMST and SPXS in my portfolio?

SMST and SPXS have a correlation of 0.50, 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 SPXS?

SMST has higher volatility (34.07%) compared to SPXS (11.58%). In terms of maximum drawdown, SMST dropped -99.25% vs SPXS's -100.00%.

Which ETF is better, SMST or SPXS?

On 1-year performance, SMST leads with 121.46% vs -43.54% for SPXS. On fees, SPXS is cheaper at 1.08% per year. On volatility, SPXS has been the lower-risk option at 11.58%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, SMST or SPXS?

Over the 1-year period, SMST has performed better with a 121.46% return vs -43.54%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, SMST or SPXS?

SPXS is cheaper with a 1.08% expense ratio, compared with 1.29% for SMST.

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

SPXS has the higher dividend yield at 4.65%, compared with 0.00% for SMST.

What is the main difference between SMST and SPXS?

They also come from different issuers: Defiance and Direxion. Their fees differ too: 1.29% for SMST and 1.08% for SPXS.

Which has better risk-adjusted returns?

SMST currently has the higher Sharpe Ratio (0.81 vs -1.14), 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.