TZA vs. SMDD
TZA (Direxion Daily Small Cap Bear 3X Shares) and SMDD (ProShares UltraPro Short MidCap400) are both Leveraged Equities funds - TZA tracks the Russell 2000 Index (-300%) while SMDD tracks the S&P MidCap 400 Index (-300%). Both are passively managed. Over the past 10 years, TZA returned -44.17%/yr vs -40.73%/yr for SMDD. Their correlation of 0.94 suggests significant overlap in exposure. TZA charges 1.11%/yr vs 0.95%/yr for SMDD.
Performance
TZA vs. SMDD - Performance Comparison
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Returns By Period
In the year-to-date period, TZA achieves a -46.35% return, which is significantly lower than SMDD's -34.66% return. Over the past 10 years, TZA has underperformed SMDD with an annualized return of -44.17%, while SMDD has yielded a comparatively higher -40.73% annualized return.
TZA
- 1D
- 2.05%
- 1M
- -12.69%
- YTD
- -46.35%
- 6M
- -42.28%
- 1Y
- -67.58%
- 3Y*
- -46.88%
- 5Y*
- -30.52%
- 10Y*
- -44.17%
SMDD
- 1D
- 3.06%
- 1M
- -8.08%
- YTD
- -34.66%
- 6M
- -30.86%
- 1Y
- -49.12%
- 3Y*
- -38.28%
- 5Y*
- -30.11%
- 10Y*
- -40.73%
TZA vs. SMDD - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
TZA Direxion Daily Small Cap Bear 3X Shares | -46.35% | -40.22% | -32.22% | -41.19% | 30.21% | -50.80% | -80.43% | -53.25% | 25.06% | -38.19% |
SMDD ProShares UltraPro Short MidCap400 | -34.66% | -27.46% | -31.02% | -38.37% | 7.69% | -58.01% | -74.71% | -53.34% | 33.50% | -39.87% |
Correlation
The correlation between TZA and SMDD is 0.92, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.92 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.94 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.95 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.93 |
Correlation (All Time) Calculated using the full available price history since Feb 11, 2010 | 0.94 |
The correlation between TZA and SMDD has been stable across timeframes, ranging from 0.92 to 0.95 - a consistent structural relationship.
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Return for Risk
TZA vs. SMDD — Risk / Return Rank
TZA
SMDD
TZA vs. SMDD - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Direxion Daily Small Cap Bear 3X Shares (TZA) and ProShares UltraPro Short MidCap400 (SMDD). 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.
| TZA | SMDD | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.12 | ||
| Sortino ratioReturn per unit of downside risk | -0.58 | ||
| Omega ratioGain probability vs. loss probability | 0.77 | 0.82 | -0.05 |
| Calmar ratioReturn relative to maximum drawdown | -1.00 | -0.97 | -0.02 |
| Martin ratioReturn relative to average drawdown | -1.56 | -1.69 | +0.13 |
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Drawdowns
TZA vs. SMDD - Drawdown Comparison
The maximum TZA drawdown since its inception was -100.00%, roughly equal to the maximum SMDD drawdown of -99.99%. Use the drawdown chart below to compare losses from any high point for TZA and SMDD.
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Drawdown Indicators
| TZA | SMDD | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -100.00% | -99.99% | -0.01% |
Max Drawdown (1Y)Largest decline over 1 year | -68.07% | -50.54% | -17.53% |
Max Drawdown (3Y)Largest decline over 3 years | -89.28% | -81.99% | -7.29% |
Max Drawdown (5Y)Largest decline over 5 years | -91.56% | -87.81% | -3.75% |
Max Drawdown (10Y)Largest decline over 10 years | -99.74% | -99.52% | -0.22% |
Current DrawdownCurrent decline from peak | -100.00% | -99.99% | -0.01% |
Average DrawdownAverage peak-to-trough decline | -97.99% | -92.96% | -5.03% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 43.46% | 29.29% | +14.17% |
Volatility
TZA vs. SMDD - Volatility Comparison
Direxion Daily Small Cap Bear 3X Shares (TZA) has a higher volatility of 19.17% compared to ProShares UltraPro Short MidCap400 (SMDD) at 13.96%. This indicates that TZA's price experiences larger fluctuations and is considered to be riskier than SMDD based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| TZA | SMDD | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 19.17% | 13.96% | +5.21% |
Volatility (6M)Calculated over the trailing 6-month period | 42.84% | 35.56% | +7.28% |
Volatility (1Y)Calculated over the trailing 1-year period | 58.62% | 47.65% | +10.97% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 67.66% | 58.88% | +8.78% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 68.98% | 63.35% | +5.63% |
TZA vs. SMDD - Expense Ratio Comparison
TZA has a 1.11% expense ratio, which is higher than SMDD's 0.95% expense ratio.
Dividends
TZA vs. SMDD - Dividend Comparison
TZA's dividend yield for the trailing twelve months is around 5.35%, less than SMDD's 7.14% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 |
|---|---|---|---|---|---|---|---|---|---|
SMDD ProShares UltraPro Short MidCap400 | 7.14% | 4.96% | 4.09% | 3.86% | 0.14% | 0.00% | 0.13% | 1.51% | 0.09% |
TZA Direxion Daily Small Cap Bear 3X Shares | 5.35% | 5.08% | 5.40% | 5.49% | 0.00% | 0.00% | 1.21% | 1.56% | 0.63% |
Frequently Asked Questions
With a correlation of 0.92, TZA and SMDD move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.
TZA has higher volatility (19.17%) compared to SMDD (13.96%). In terms of maximum drawdown, TZA dropped -100.00% vs SMDD's -99.99%.
On 10-year performance, SMDD leads with -40.73% vs -44.17% for TZA. On fees, SMDD is cheaper at 0.95% per year. On volatility, SMDD has been the lower-risk option at 13.96%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, SMDD has performed better with a -40.73% return vs -44.17%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
SMDD is cheaper with a 0.95% expense ratio, compared with 1.11% for TZA.
SMDD has the higher dividend yield at 7.14%, compared with 5.35% for TZA.
TZA tracks Russell 2000 Index (-300%), while SMDD tracks S&P MidCap 400 Index (-300%). They also come from different issuers: Direxion and ProShares. Their fees differ too: 1.11% for TZA and 0.95% for SMDD.
SMDD currently has the higher Sharpe Ratio (-1.03 vs -1.16), 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.
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