TSLS vs. SMST

Last updated Jun 3, 2026

TSLS (Direxion Daily TSLA Bear 1X Shares) and SMST (Defiance Daily Target 2X Short MSTR ETF) are both Inverse Equities funds. TSLS is passively managed, while SMST is actively managed. Over the past year, TSLS returned -29.14% vs 40.09% for SMST. At a 0.42 correlation, their price movements are largely independent. TSLS charges 1.07%/yr vs 1.29%/yr for SMST.

Performance

TSLS vs. SMST - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Direxion Daily TSLA Bear 1X Shares (TSLS) 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, TSLS achieves a 3.03% return, which is significantly higher than SMST's -55.68% return.

TSLS

• 1D: -1.93%
• 1M: -8.56%
• YTD: 3.03%
• 6M: -2.42%
• 1Y: -29.14%
• 3Y*: -38.35%
• 5Y*: —
• 10Y*: —

SMST

• 1D: 17.75%
• 1M: 49.84%
• YTD: -55.68%
• 6M: -41.65%
• 1Y: 40.09%
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

TSLS vs. SMST - Yearly Performance Comparison

	2026 (YTD)	2025	2024
TSLS Direxion Daily TSLA Bear 1X Shares	3.03%	-34.95%	-53.02%
SMST Defiance Daily Target 2X Short MSTR ETF	-55.68%	-44.36%	-90.90%

Correlation

The correlation between TSLS and SMST is 0.40, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.40
Correlation (All Time) Calculated using the full available price history since Aug 22, 2024	0.42

Return for Risk

TSLS vs. SMST — Risk / Return Rank

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

TSLS

TSLS Risk / Return Rank: 4
TSLS Sharpe Ratio Rank: 4
TSLS Sortino Ratio Rank: 4
TSLS Omega Ratio Rank: 4
TSLS Calmar Ratio Rank: 3
TSLS Martin Ratio Rank: 4

SMST

SMST Risk / Return Rank: 18
SMST Sharpe Ratio Rank: 13
SMST Sortino Ratio Rank: 25
SMST Omega Ratio Rank: 26
SMST Calmar Ratio Rank: 14
SMST Martin Ratio Rank: 13

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.

TSLS vs. SMST - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Direxion Daily TSLA Bear 1X Shares (TSLS) 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.

	TSLS	SMST	Difference
Sharpe ratio Return per unit of total volatility	-0.63	0.29	-0.91
Sortino ratio Return per unit of downside risk	-0.72	1.40	-2.13
Omega ratio Gain probability vs. loss probability	0.92	1.18	-0.26
Calmar ratio Return relative to maximum drawdown	-0.62	0.44	-1.06
Martin ratio Return relative to average drawdown	-0.87	0.93	-1.80
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

TSLS vs. SMST - Sharpe Ratio Comparison

The current TSLS Sharpe Ratio is -0.63, which is lower than the SMST Sharpe Ratio of 0.29. The chart below compares the historical Sharpe Ratios of TSLS 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

	TSLS	SMST	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	-0.63	0.29	-0.91
Sharpe Ratio (All Time) Calculated using the full available price history	-0.54	-0.53	-0.01

Drawdowns

TSLS vs. SMST - Drawdown Comparison

The maximum TSLS drawdown since its inception was -90.73%, smaller than the maximum SMST drawdown of -99.25%. Use the drawdown chart below to compare losses from any high point for TSLS and SMST.

Drawdown Indicators

	TSLS	SMST	Difference
Max Drawdown Largest peak-to-trough decline	-90.73%	-99.25%	+8.52%
Max Drawdown (1Y) Largest decline over 1 year	-46.42%	-85.39%	+38.97%
Max Drawdown (3Y) Largest decline over 3 years	-84.16%	—	—
Current Drawdown Current decline from peak	-89.61%	-98.26%	+8.65%
Average Drawdown Average peak-to-trough decline	-63.47%	-90.65%	+27.18%
Ulcer Index Depth and duration of drawdowns from previous peaks	32.75%	40.51%	-7.76%

Volatility

TSLS vs. SMST - Volatility Comparison

The current volatility for Direxion Daily TSLA Bear 1X Shares (TSLS) is 12.05%, while Defiance Daily Target 2X Short MSTR ETF (SMST) has a volatility of 37.28%. This indicates that TSLS 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

	TSLS	SMST	Difference
Volatility (1M) Calculated over the trailing 1-month period	12.05%	37.28%	-25.23%
Volatility (6M) Calculated over the trailing 6-month period	27.72%	125.90%	-98.18%
Volatility (1Y) Calculated over the trailing 1-year period	46.68%	140.31%	-93.63%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	58.79%	166.64%	-107.85%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	58.79%	166.64%	-107.85%

TSLS vs. SMST - Expense Ratio Comparison

TSLS has a 1.07% expense ratio, which is lower than SMST's 1.29% expense ratio.

Dividends

TSLS vs. SMST - Dividend Comparison

TSLS's dividend yield for the trailing twelve months is around 3.39%, while SMST has not paid dividends to shareholders.

Position	TTM	2025	2024	2023	2022
SMST Defiance Daily Target 2X Short MSTR ETF	0.00%	0.00%	0.00%	0.00%	0.00%
TSLS Direxion Daily TSLA Bear 1X Shares	3.39%	4.30%	7.62%	4.52%	3.46%

Frequently Asked Questions

Can I hold both TSLS and SMST in my portfolio?

TSLS and SMST have a correlation of 0.40, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, TSLS or SMST?

SMST has higher volatility (37.28%) compared to TSLS (12.05%). In terms of maximum drawdown, TSLS dropped -90.73% vs SMST's -99.25%.

Which ETF is better, TSLS or SMST?

On 1-year performance, SMST leads with 40.09% vs -29.14% for TSLS. On fees, TSLS is cheaper at 1.07% per year. On volatility, TSLS has been the lower-risk option at 12.05%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, TSLS or SMST?

Over the 1-year period, SMST has performed better with a 40.09% return vs -29.14%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, TSLS or SMST?

TSLS is cheaper with a 1.07% expense ratio, compared with 1.29% for SMST.

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

TSLS has the higher dividend yield at 3.39%, compared with 0.00% for SMST.

What is the main difference between TSLS and SMST?

They also come from different issuers: Direxion and Defiance. Their fees differ too: 1.07% for TSLS and 1.29% for SMST.

Which has better risk-adjusted returns?

SMST currently has the higher Sharpe Ratio (0.29 vs -0.63), 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.