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 -43.15%/yr vs -40.23%/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 -40.43% return, which is significantly lower than SMDD's -33.48% return. Over the past 10 years, TZA has underperformed SMDD with an annualized return of -43.15%, while SMDD has yielded a comparatively higher -40.23% annualized return.
TZA
- 1D
- 3.75%
- 1M
- -10.87%
- YTD
- -40.43%
- 6M
- -38.50%
- 1Y
- -65.59%
- 3Y*
- -44.69%
- 5Y*
- -30.11%
- 10Y*
- -43.15%
SMDD
- 1D
- 0.19%
- 1M
- -11.19%
- YTD
- -33.48%
- 6M
- -33.71%
- 1Y
- -48.94%
- 3Y*
- -38.20%
- 5Y*
- -29.60%
- 10Y*
- -40.23%
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 | -40.43% | -40.22% | -32.22% | -41.19% | 30.21% | -50.80% | -80.43% | -53.25% | 25.06% | -38.19% |
SMDD ProShares UltraPro Short MidCap400 | -33.48% | -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 12, 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.
| TZA | SMDD | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.10 | ||
| Sortino ratioReturn per unit of downside risk | -0.48 | ||
| Omega ratioGain probability vs. loss probability | 0.78 | 0.82 | -0.04 |
| Calmar ratioReturn relative to maximum drawdown | -0.98 | -0.97 | 0.00 |
| Martin ratioReturn relative to average drawdown | -1.51 | -1.65 | +0.14 |
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month. | |||
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Sharpe Ratios by Period
| TZA | SMDD | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | -1.16 | -1.05 | -0.10 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | -0.45 | -0.51 | +0.06 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | -0.63 | -0.64 | +0.01 |
Sharpe Ratio (All Time)Calculated using the full available price history | -0.71 | -0.71 | 0.00 |
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 | -67.28% | -50.42% | -16.86% |
Max Drawdown (3Y)Largest decline over 3 years | -88.34% | -81.09% | -7.25% |
Max Drawdown (5Y)Largest decline over 5 years | -90.83% | -87.20% | -3.63% |
Max Drawdown (10Y)Largest decline over 10 years | -99.71% | -99.50% | -0.21% |
Current DrawdownCurrent decline from peak | -100.00% | -99.99% | -0.01% |
Average DrawdownAverage peak-to-trough decline | -98.00% | -92.96% | -5.04% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 43.51% | 29.68% | +13.83% |
Volatility
TZA vs. SMDD - Volatility Comparison
Direxion Daily Small Cap Bear 3X Shares (TZA) has a higher volatility of 17.03% compared to ProShares UltraPro Short MidCap400 (SMDD) at 13.34%. 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 | 17.03% | 13.34% | +3.69% |
Volatility (6M)Calculated over the trailing 6-month period | 40.64% | 34.30% | +6.34% |
Volatility (1Y)Calculated over the trailing 1-year period | 57.05% | 46.71% | +10.34% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 67.43% | 58.82% | +8.61% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 68.91% | 63.34% | +5.57% |
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 4.82%, less than SMDD's 7.01% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 |
|---|---|---|---|---|---|---|---|---|---|
SMDD ProShares UltraPro Short MidCap400 | 7.01% | 4.96% | 4.09% | 3.86% | 0.14% | 0.00% | 0.13% | 1.51% | 0.09% |
TZA Direxion Daily Small Cap Bear 3X Shares | 4.82% | 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 (17.03%) compared to SMDD (13.34%). In terms of maximum drawdown, TZA dropped -100.00% vs SMDD's -99.99%.
On 10-year performance, SMDD leads with -40.23% vs -43.15% for TZA. On fees, SMDD is cheaper at 0.95% per year. On volatility, SMDD has been the lower-risk option at 13.34%. 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 -40.23% return vs -43.15%. 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 7.01%, compared with 4.82% 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 (-1.05 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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