AIFD vs. SMST

Last updated Jul 12, 2026

AIFD (TCW Artificial Intelligence ETF) and SMST (Defiance Daily Target 2X Short MSTR ETF) are both exchange-traded funds - AIFD is a Technology Equities fund actively managed by TCW, while SMST is a Inverse Equities fund actively managed by Defiance. Both are actively managed. Over the past year, AIFD returned 72.57% vs 223.04% for SMST. At a correlation of -0.45, they often move in opposite directions. AIFD charges 0.75%/yr vs 1.29%/yr for SMST.

Performance

AIFD vs. SMST - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in TCW Artificial Intelligence ETF (AIFD) 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, AIFD achieves a 40.47% return, which is significantly higher than SMST's -31.56% return.

AIFD

• 1D: -0.55%
• 1M: -1.03%
• 6M: 38.12%
• YTD: 40.47%
• 1Y: 72.57%
• 3Y*: —
• 5Y*: —
• 10Y*: —

SMST

• 1D: -1.67%
• 1M: 37.17%
• 6M: -24.18%
• YTD: -31.56%
• 1Y: 223.04%
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

AIFD vs. SMST - Yearly Performance Comparison

	2026 (YTD)	2025	2024
AIFD TCW Artificial Intelligence ETF	40.47%	28.30%	10.74%
SMST Defiance Daily Target 2X Short MSTR ETF	-31.56%	-44.36%	-91.71%

Correlation

The correlation between AIFD and SMST is -0.42, 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 (1Y) Calculated over the trailing 1-year period	-0.42
Correlation (All Time) Calculated using the full available price history since Aug 21, 2024	-0.45

Return for Risk

AIFD vs. SMST — Risk / Return Rank

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

AIFD

AIFD Risk / Return Rank: 90
AIFD Sharpe Ratio Rank: 92
AIFD Sortino Ratio Rank: 84
AIFD Omega Ratio Rank: 84
AIFD Calmar Ratio Rank: 95
AIFD Martin Ratio Rank: 94

SMST

SMST Risk / Return Rank: 53
SMST Sharpe Ratio Rank: 49
SMST Sortino Ratio Rank: 58
SMST Omega Ratio Rank: 58
SMST Calmar Ratio Rank: 60
SMST Martin Ratio Rank: 38

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.

AIFD vs. SMST - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for TCW Artificial Intelligence ETF (AIFD) 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.

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.

	AIFD	SMST	Difference
Sharpe ratio: Return per unit of total volatility	2.54	1.37	+1.16
Sortino ratio: Return per unit of downside risk	2.98	2.22	+0.77
Omega ratio: Gain probability vs. loss probability	1.40	1.29	+0.11
Calmar ratio: Return relative to maximum drawdown	6.20	2.39	+3.81
Martin ratio: Return relative to average drawdown	19.98	4.64	+15.34

AIFD vs. SMST - Sharpe Ratio Comparison

The current AIFD Sharpe Ratio is 2.54, which is higher than the SMST Sharpe Ratio of 1.37. The chart below compares the historical Sharpe Ratios of AIFD 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.

Drawdowns

AIFD vs. SMST - Drawdown Comparison

The maximum AIFD drawdown since its inception was -33.20%, smaller than the maximum SMST drawdown of -99.25%. Use the drawdown chart below to compare losses from any high point for AIFD and SMST.

Drawdown Indicators

	AIFD	SMST	Difference
Max Drawdown Largest peak-to-trough decline	-33.20%	-99.25%	+66.05%
Max Drawdown (1Y) Largest decline over 1 year	-11.75%	-85.39%	+73.64%
Current Drawdown Current decline from peak	-7.86%	-97.31%	+89.45%
Average Drawdown Average peak-to-trough decline	-5.78%	-90.88%	+85.10%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.64%	43.98%	-40.34%

Volatility

AIFD vs. SMST - Volatility Comparison

The current volatility for TCW Artificial Intelligence ETF (AIFD) is 12.47%, while Defiance Daily Target 2X Short MSTR ETF (SMST) has a volatility of 56.47%. This indicates that AIFD 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

	AIFD	SMST	Difference
Volatility (1M) Calculated over the trailing 1-month period	12.47%	56.47%	-44.00%
Volatility (6M) Calculated over the trailing 6-month period	23.54%	135.94%	-112.40%
Volatility (1Y) Calculated over the trailing 1-year period	28.76%	149.09%	-120.33%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	30.24%	167.87%	-137.63%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	30.24%	167.87%	-137.63%

AIFD vs. SMST - Expense Ratio Comparison

AIFD has a 0.75% expense ratio, which is lower than SMST's 1.29% expense ratio.

Dividends

AIFD vs. SMST - Dividend Comparison

Neither AIFD nor SMST has paid dividends to shareholders.

Tickers have no history of dividend payments

Frequently Asked Questions

Can I hold both AIFD and SMST in my portfolio?

AIFD and SMST have a correlation of -0.42, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, AIFD or SMST?

SMST has higher volatility (56.47%) compared to AIFD (12.47%). In terms of maximum drawdown, AIFD dropped -33.20% vs SMST's -99.25%.

Which ETF is better, AIFD or SMST?

On 1-year performance, SMST leads with 223.04% vs 72.57% for AIFD. On fees, AIFD is cheaper at 0.75% per year. On volatility, AIFD has been the lower-risk option at 12.47%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, AIFD or SMST?

Over the 1-year period, SMST has performed better with a 223.04% return vs 72.57%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, AIFD or SMST?

AIFD is cheaper with a 0.75% expense ratio, compared with 1.29% for SMST.

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

AIFD and SMST have nearly identical dividend yields, around 0.00%.

What is the main difference between AIFD and SMST?

AIFD is categorized as Technology Equities, while SMST is Inverse Equities. They also come from different issuers: TCW and Defiance. Their fees differ too: 0.75% for AIFD and 1.29% for SMST.

Which has better risk-adjusted returns?

AIFD currently has the higher Sharpe Ratio (2.54 vs 1.37), 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.