STSM vs. USGG

Last updated Jul 21, 2026

STSM (Defiance Daily Target 2X Short TSM ETF) and USGG (Leverage Shares 2X Long USAR Daily ETF) are both Leveraged Equities funds - STSM tracks the Taiwan Semiconductor Manufacturing Company Limited (TSM) while USGG tracks the USA Rare Earth, Inc. (USAR). Both are passively managed. At a correlation of -0.38, they often move in opposite directions. STSM charges 1.31%/yr vs 0.75%/yr for USGG.

Performance

STSM vs. USGG - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Defiance Daily Target 2X Short TSM ETF (STSM) and Leverage Shares 2X Long USAR Daily ETF (USGG). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

STSM

• 1D: -2.64%
• 1M: 23.61%
• 6M: -47.26%
• YTD: -59.22%
• 1Y: —
• 3Y*: —
• 5Y*: —
• 10Y*: —
• ALL TIME*: —

USGG

• 1D: -6.01%
• 1M: -64.22%
• 6M: -62.07%
• YTD: —
• 1Y: —
• 3Y*: —
• 5Y*: —
• 10Y*: —
• ALL TIME*: —

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

STSM vs. USGG - Yearly Performance Comparison

	2026 (YTD)
STSM Defiance Daily Target 2X Short TSM ETF	-50.63%
USGG Leverage Shares 2X Long USAR Daily ETF	-60.81%

Correlation

The correlation between STSM and USGG is -0.38, 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 (All Time) Calculated using the full available price history since Jan 13, 2026	-0.38

Return for Risk

STSM vs. USGG - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Defiance Daily Target 2X Short TSM ETF (STSM) and Leverage Shares 2X Long USAR Daily ETF (USGG). 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.

Risk / return metrics aren't available yet — we need at least 12 months of trading data to calculate them.

Drawdowns

STSM vs. USGG - Drawdown Comparison

The maximum STSM drawdown since its inception was -76.23%, smaller than the maximum USGG drawdown of -82.76%. Use the drawdown chart below to compare losses from any high point for STSM and USGG.

Drawdown Indicators

	STSM	USGG	Difference
Max Drawdown Largest peak-to-trough decline	-76.23%	-82.76%	+6.53%
Current Drawdown Current decline from peak	-67.67%	-82.76%	+15.09%
Average Drawdown Average peak-to-trough decline	-46.28%	-50.58%	+4.30%

Volatility

Volatility by Period

	STSM	USGG	Difference
Volatility (1Y) Calculated over the trailing 1-year period	83.31%	216.47%	-133.16%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	83.31%	216.47%	-133.16%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	83.31%	216.47%	-133.16%

STSM vs. USGG - Expense Ratio Comparison

STSM has a 1.31% expense ratio, which is higher than USGG's 0.75% expense ratio.

Dividends

STSM vs. USGG - Dividend Comparison

Neither STSM nor USGG has paid dividends to shareholders.

Tickers have no history of dividend payments

Frequently Asked Questions

Can I hold both STSM and USGG in my portfolio?

STSM and USGG have a correlation of -0.38, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which ETF is better, STSM or USGG?

On fees, USGG is cheaper at 0.75% per year. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF is cheaper, STSM or USGG?

USGG is cheaper with a 0.75% expense ratio, compared with 1.31% for STSM.

Which ETF pays a higher dividend yield, STSM or USGG?

STSM and USGG have nearly identical dividend yields, around 0.00%.

What is the main difference between STSM and USGG?

STSM tracks Taiwan Semiconductor Manufacturing Company Limited (TSM), while USGG tracks USA Rare Earth, Inc. (USAR). They also come from different issuers: Defiance and Leverage Shares. Their fees differ too: 1.31% for STSM and 0.75% for USGG.