SPDN vs. SMST

Last updated Jun 4, 2026

SPDN (Direxion Daily S&P 500 Bear 1x Shares) and SMST (Defiance Daily Target 2X Short MSTR ETF) are both Inverse Equities funds. SPDN is passively managed, while SMST is actively managed. Over the past year, SPDN returned -16.94% vs 73.40% for SMST. At a 0.46 correlation, their price movements are largely independent. SPDN charges 0.50%/yr vs 1.29%/yr for SMST.

Performance

SPDN vs. SMST - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Direxion Daily S&P 500 Bear 1x Shares (SPDN) and Defiance Daily Target 2X Short MSTR ETF (SMST). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, SPDN achieves a -7.81% return, which is significantly higher than SMST's -49.49% return.

SPDN

• 1D: 0.58%
• 1M: -4.42%
• YTD: -7.81%
• 6M: -7.36%
• 1Y: -16.94%
• 3Y*: -12.80%
• 5Y*: -8.88%
• 10Y*: —

SMST

• 1D: 13.96%
• 1M: 85.04%
• YTD: -49.49%
• 6M: -27.60%
• 1Y: 73.40%
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

SPDN vs. SMST - Yearly Performance Comparison

	2026 (YTD)	2025	2024
SPDN Direxion Daily S&P 500 Bear 1x Shares	-7.81%	-11.09%	-2.05%
SMST Defiance Daily Target 2X Short MSTR ETF	-49.49%	-44.36%	-90.90%

Correlation

The correlation between SPDN and SMST is 0.46, which is low. Their price movements are largely independent, making them effective diversification partners.

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

Return for Risk

SPDN vs. SMST — Risk / Return Rank

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

SPDN

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

SMST

SMST Risk / Return Rank: 24
SMST Sharpe Ratio Rank: 18
SMST Sortino Ratio Rank: 31
SMST Omega Ratio Rank: 32
SMST Calmar Ratio Rank: 21
SMST Martin Ratio Rank: 18

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.

SPDN vs. SMST - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Direxion Daily S&P 500 Bear 1x Shares (SPDN) and Defiance Daily Target 2X Short MSTR ETF (SMST). 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.

	SPDN	SMST	Difference
Sharpe ratio: Return per unit of total volatility	-1.41	0.52	-1.93
Sortino ratio: Return per unit of downside risk	-2.02	1.63	-3.65
Omega ratio: Gain probability vs. loss probability	0.78	1.21	-0.43
Calmar ratio: Return relative to maximum drawdown	-0.95	0.86	-1.81
Martin ratio: Return relative to average drawdown	-1.74	1.81	-3.54
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

SPDN vs. SMST - Sharpe Ratio Comparison

The current SPDN Sharpe Ratio is -1.41, which is lower than the SMST Sharpe Ratio of 0.52. The chart below compares the historical Sharpe Ratios of SPDN and SMST, 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

	SPDN	SMST	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	-1.41	0.52	-1.93
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	-0.53	—	—
Sharpe Ratio (All Time) Calculated using the full available price history	-0.70	-0.52	-0.17

Drawdowns

SPDN vs. SMST - Drawdown Comparison

The maximum SPDN drawdown since its inception was -75.31%, smaller than the maximum SMST drawdown of -99.25%. Use the drawdown chart below to compare losses from any high point for SPDN and SMST.

Drawdown Indicators

	SPDN	SMST	Difference
Max Drawdown Largest peak-to-trough decline	-75.31%	-99.25%	+23.94%
Max Drawdown (1Y) Largest decline over 1 year	-17.95%	-85.39%	+67.44%
Max Drawdown (3Y) Largest decline over 3 years	-38.24%	—	—
Max Drawdown (5Y) Largest decline over 5 years	-43.85%	—	—
Current Drawdown Current decline from peak	-75.17%	-98.02%	+22.85%
Average Drawdown Average peak-to-trough decline	-48.54%	-90.67%	+42.13%
Ulcer Index Depth and duration of drawdowns from previous peaks	9.78%	40.73%	-30.95%

Volatility

SPDN vs. SMST - Volatility Comparison

The current volatility for Direxion Daily S&P 500 Bear 1x Shares (SPDN) is 2.78%, while Defiance Daily Target 2X Short MSTR ETF (SMST) has a volatility of 37.33%. This indicates that SPDN experiences smaller price fluctuations and is considered to be less risky than SMST based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	SPDN	SMST	Difference
Volatility (1M) Calculated over the trailing 1-month period	2.78%	37.33%	-34.55%
Volatility (6M) Calculated over the trailing 6-month period	9.08%	126.48%	-117.40%
Volatility (1Y) Calculated over the trailing 1-year period	12.10%	140.93%	-128.83%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	16.86%	166.79%	-149.93%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	18.04%	166.79%	-148.75%

SPDN vs. SMST - Expense Ratio Comparison

SPDN has a 0.50% expense ratio, which is lower than SMST's 1.29% expense ratio.

Dividends

SPDN vs. SMST - Dividend Comparison

SPDN's dividend yield for the trailing twelve months is around 4.09%, while SMST has not paid dividends to shareholders.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017
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%
SPDN Direxion Daily S&P 500 Bear 1x Shares	4.09%	4.06%	5.32%	5.84%	0.96%	0.00%	0.10%	1.89%	1.24%	0.42%

Frequently Asked Questions

Can I hold both SPDN and SMST in my portfolio?

SPDN and SMST have a correlation of 0.46, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, SPDN or SMST?

SMST has higher volatility (37.33%) compared to SPDN (2.78%). In terms of maximum drawdown, SPDN dropped -75.31% vs SMST's -99.25%.

Which ETF is better, SPDN or SMST?

On 1-year performance, SMST leads with 73.40% vs -16.94% for SPDN. On fees, SPDN is cheaper at 0.50% per year. On volatility, SPDN has been the lower-risk option at 2.78%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, SPDN or SMST?

Over the 1-year period, SMST has performed better with a 73.40% return vs -16.94%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, SPDN or SMST?

SPDN is cheaper with a 0.50% expense ratio, compared with 1.29% for SMST.

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

SPDN has the higher dividend yield at 4.09%, compared with 0.00% for SMST.

What is the main difference between SPDN and SMST?

They also come from different issuers: Direxion and Defiance. Their fees differ too: 0.50% for SPDN and 1.29% for SMST.

Which has better risk-adjusted returns?

SMST currently has the higher Sharpe Ratio (0.52 vs -1.41), 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.