ETF Evaluator:
Defiance Daily Target 2X Short MSTR ETF ()
Follow This ETF
(as of Aug 26)
Best Performing in Trading--Inverse Equity Over the Last Year
| 204.3% | T-REX 2X Inverse MSTR Daily Target ETF (MSTZ) |
| 169.7% | Defiance Daily Target 2X Short MSTR ETF (SMST) |
| 53.1% | Direxion Daily NFLX Bear 1X Shares (NFXS) |
| 39.2% | -1x Short VIX Futures ETF (SVIX) |
| 39.1% | GraniteShares 2x Short COIN Daily ETF (CONI) |
Risk
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Risk
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ETF Details
Defiance Daily Target 2X Short MSTR ETF Overview
Defiance Daily Target 2X Short MSTR ETF (SMST) is an actively managed Miscellaneous Trading--Inverse Equity exchange-traded fund (ETF). Defiance ETFs LLC launched the ETF in 2024.
The investment seeks daily inverse investment results, before fees and expenses, of -2.0 times (-200%) the daily percentage change in the share price of MSTR.
The fund advisor has adopted a policy to have at least 80% of its investment exposure to financial instruments with economic characteristics that should provide 2 times the inverse exposure to the daily performance of the underlying security. The fund is non-diversified.
About Defiance Daily Target 2X Short MSTR ETF (SMST)
There are 2 members of the management team with an average tenure of 1.95 years: Qiao Duan (2024) and Christopher Mullen (2024). Management tenure is more important for actively managed ETFs than passive index ETFs.
Defiance Daily Target 2X Short MSTR ETF has 10 securities in its portfolio. The top 10 holdings constitute 183.4% of the ETF’s assets. The ETF meets the SEC requirement of being classified as a nondiversified fund. The ETF is not considered to have an ESG focus with its investment selection and management.
Defiance Daily Target 2X Short MSTR ETF is part of the Other global asset class and is within the Miscellaneous ETF group. Defiance Daily Target 2X Short MSTR ETF has 0.0% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is -133.3% There is 0.0% allocated to foreign stock, and 0.0% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 0.0% (0.0% domestic bond, 0.0% foreign bond and 0.0% convertible bond). Defiance Daily Target 2X Short MSTR ETF has 280.8% of the portfolio in cash.
Assets Under Management
The fund has $28 million in total assets, which is below the $75 million average for the Trading--Inverse Equity category. Normally, lower assets under management translates to higher average expense ratios, and greater total assets are desired. However, for some investment categories, such as small-cap investing, it may be difficult for the manager to fully employ the desired active strategy if assets grow too large or too quickly.
SMST Performance and Fees
The expense ratio measures how much of a fund’s assets are used for administrative expenses and operating expenses, including adviser fees and fees for the transfer agent and custodial services. The Defiance Daily Target 2X Short MSTR ETF expense ratio is high compared to funds in the Trading--Inverse Equity category. Defiance Daily Target 2X Short MSTR ETF has an expense ratio of 1.31%, which is 14% higher than its category average, making the fund expense ratio grade a D. While it is difficult to predict returns, it is known that high annual expense ratios reduce your rate of return, and excessive fees are difficult to overcome. Active management normally comes with higher expense ratios than passive index management. Certain investment categories such as small company and foreign also normally have higher expense ratios. It is best to compare fund expense ratios against the category averages for meaningful assessments.
High portfolio turnover can translate to higher expenses and lower aftertax returns. Defiance Daily Target 2X Short MSTR ETF has a portfolio turnover rate of 0%, which indicates that it holds its assets around /years. By way of comparison, the average portfolio turnover is 1085% for the Trading--Inverse Equity category.
Recently, in the month of July 2026, Defiance Daily Target 2X Short MSTR ETF returned -24.4%, which earned it a grade of F, as the Trading--Inverse Equity category had an average return of 7.3%. The letter grades of A, B, C, D and F are based upon relative rankings within the investment category. A grade of A, for example, would indicate that the return is in the highest 20% for that time period compared to all ETFs in that category.
Defiance Daily Target 2X Short MSTR ETF has a trailing yield of 0.00%, which is below the 5.32% category average.
The fund normally distributes its income monthly and its capital gains annually.
It’s natural to seek the best-performing investments, but you must consider the relationship between risk and return and the impact of costs and taxes on your realized returns.
Defiance Daily Target 2X Short MSTR ETF Grades
Year to date, the ETF has returned -35.5%, 9.6 percentage points worse than the category, which translates into a grade of D. The fund has returned 169.7% over the past year (grade of A).
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SMST Trailing NAV Total Returns Data as of 7/31/26
| Last Month |
Last Quarter |
Ann'l. 1Yr |
Ann'l. 3Yr |
Ann'l. 5Yr |
Ann'l. 10Yr |
|
| SMST Return (NAV) | -24.4% | 87.2% | 169.7% | na | na | na |
| SMST Return (Price) | -24.8% | 85.9% | 169.7% | na | na | na |
| NAV +/- Price Return | 0.407% | 1.278% | -0.000% | na | na | na |
| Trading--Inverse Equity Avg | 7.3% | -12.0% | -29.4% | -28.2% | -22.9% | -29.6% |
| SMST Grade (NAV) | F | A | A | na | na | na |
| +/- Category (NAV) | -31.7% | 99.2% | 199.1% | na | na | na |
| SMST Tax-Cost Ratio | na | na | 0.0% | na | na | na |
SMST Annual NAV Total ReturnsData as of 7/31/26
| 2026 | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |
| SMST Return (NAV) | -35.5% | -44.3% | na | na | na | na | na | na | na | na | na |
| SMST Return (Price) | -35.8% | -44.4% | na | na | na | na | na | na | na | na | na |
| NAV +/- Price Ret | 0.009% | 0.002% | na | na | na | na | na | na | na | na | na |
| Trading--Inverse Equity Avg | -25.8% | -35.3% | -26.4% | -26.2% | 15.2% | -33.5% | -52.3% | -39.8% | 9.5% | -34.8% | -33.2% |
| SMST Grade (NAV) | D | D | na | na | na | na | na | na | na | na | na |
| +/- Category | -9.6% | -9.0% | na | na | na | na | na | na | na | na | na |
| Risk Measures | |
| Beta: | na |
| R-Squared: | na |
| Standard Deviation: | na |
| Category Risk Index: | na |
| Category Risk Rating: | |
| Total Risk Index: | na |
| Total Risk Rating: | |
| Portfolio Characteristics | |
| Yield: | 0.0% |
| Total Assets: | $ 28 Mil |
| Share Class Assets: | $ 28 Mil |
| Turnover: | 0.0% |
| Expense Ratio: | 1.31% |
| Index Fund: | No |
| Index Tracked: | N/A |
| Index Weighting: | -200% |
| Leveraged: | Yes |
| Socially Responsible Fund: | No |
| Capital Gains Distribution Frequency: | Annually |
| Income Distribution Frequency: | Monthly |
Management Team
| Number of Managers: 2 | |||
| Longest Tenure: 2.0 years | |||
| Average Tenure: 2.0 years | |||
| Managers (Year): Duan Qiao (2024), Mullen Christopher (2024) | |||
Portfolio Composition (as of 7/31/26)
| # of Holdings: | 10 |
| % in Top 10 Holdings: | 183.4% |
| Fund is Non-Diversified: | Yes |
| % in Foreign Issues: | 0.0% |
Portfolio Allocation |
|
| Domestic Stock: | -133.3% |
| Foreign Stock: | 0.0% |
| Preferred Stock: | 0.0% |
| Domestic Bond: | 0.0% |
| Foreign Bond: | 0.0% |
| Convertible Bond: | 0.0% |
| Other: | -47.5% |
| Cash: | 280.8% |
Purchase Information
| Legal Structure: | Open Ended Investment Company |
| Fund Family: | Defiance ETFs LLC |
| Phone Number: | 833-333-9383 |
| Website: | |
| Inception Date: | August 20, 2024 |
Expenses and Fees
| Expense Ratio (%): | 1.31% (Rating: High) |
| Category Average Expense Ratio (%): | 1.15% |
