AIYY vs. SMST

Last updated Aug 2, 2026

AIYY (YieldMax AI Option Income Strategy ETF) and SMST (Defiance Daily Target 2X Short MSTR ETF) are both exchange-traded funds - AIYY is a Derivative Income fund actively managed by YieldMax, while SMST is a Inverse Equities fund actively managed by Defiance. Both are actively managed. Over the past year, AIYY returned -58.45% vs 128.37% for SMST. Their -0.42 correlation means they have often moved in opposite directions in the past. AIYY charges 0.99%/yr vs 1.29%/yr for SMST.

Performance

AIYY vs. SMST - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in YieldMax AI Option Income Strategy ETF (AIYY) and Defiance Daily Target 2X Short MSTR ETF (SMST). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

The year-to-date returns for both stocks are quite close, with AIYY having a -34.72% return and SMST slightly lower at -35.77%.

AIYY

• 1D: 0.94%
• 1M: 0.94%
• 6M: -23.09%
• YTD: -34.72%
• 1Y: -58.45%
• 3Y*: —
• 5Y*: —
• 10Y*: —
• ALL TIME*: -42.38%

SMST

• 1D: 8.37%
• 1M: 5.47%
• 6M: -29.35%
• YTD: -35.77%
• 1Y: 128.37%
• 3Y*: —
• 5Y*: —
• 10Y*: —
• ALL TIME*: -83.68%

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

Liquidity Comparison

Position	Avg. Volume Value (2W)	Avg. Volume Value (1M)	Avg. Volume Value (3M)
AIYY YieldMax AI Option Income Strategy ETF	$582.53K	$560.85K	$820.27K
SMST Defiance Daily Target 2X Short MSTR ETF	$15.35M	$15.12M	$17.58M

AIYY vs. SMST - Yearly Performance Comparison

	2026 (YTD)	2025	2024
AIYY YieldMax AI Option Income Strategy ETF	-34.72%	-58.98%	13.36%
SMST Defiance Daily Target 2X Short MSTR ETF	-35.77%	-44.36%	-91.71%

Correlation

The correlation between AIYY and SMST is -0.45, meaning they have often moved in opposite directions in the past. This relationship can weaken or reverse as market conditions change.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	-0.45
Correlation (All Time) Calculated using the full available price history since Aug 21, 2024	-0.42

Return for Risk

AIYY vs. SMST — Risk / Return Rank

Compare historical risk-adjusted metric ranks over the past 12 months.

AIYY

AIYY Risk / Return Rank: 1
AIYY Sharpe Ratio Rank: 1
AIYY Sortino Ratio Rank: 1
AIYY Omega Ratio Rank: 0
AIYY Calmar Ratio Rank: 1
AIYY Martin Ratio Rank: 2

SMST

SMST Risk / Return Rank: 52
SMST Sharpe Ratio Rank: 45
SMST Sortino Ratio Rank: 62
SMST Omega Ratio Rank: 61
SMST Calmar Ratio Rank: 56
SMST Martin Ratio Rank: 36

The rank (0–100) uses a weighted average of the Sharpe, Sortino, Omega, Calmar, and Martin percentile ranks for the trailing 12 months. Higher means stronger historical risk-adjusted performance within the peer group.

AIYY vs. SMST - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for YieldMax AI Option Income Strategy ETF (AIYY) 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.

	AIYY	SMST	Difference
Sharpe ratio: Return per unit of total volatility	-1.12	1.13	-2.25
Sortino ratio: Return per unit of downside risk	-1.74	2.09	-3.84
Omega ratio: Gain probability vs. loss probability	0.76	1.27	-0.51
Calmar ratio: Return relative to maximum drawdown	-0.96	2.00	-2.96
Martin ratio: Return relative to average drawdown	-1.32	3.68	-5.00

AIYY vs. SMST - Sharpe Ratio Comparison

The current AIYY Sharpe Ratio is -1.12, which is lower than the SMST Sharpe Ratio of 1.13. The chart below compares the historical Sharpe Ratios of AIYY 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

AIYY vs. SMST - Drawdown Comparison

The maximum AIYY drawdown since its inception was -80.28%, smaller than the maximum SMST drawdown of -99.25%. Use the drawdown chart below to compare losses from any high point for AIYY and SMST.

Drawdown Indicators

	AIYY	SMST	Difference
Max Drawdown Largest peak-to-trough decline	-80.28%	-99.25%	+18.97%
Max Drawdown (1Y) Largest decline over 1 year	-63.12%	-85.39%	+22.27%
Current Drawdown Current decline from peak	-78.68%	-97.48%	+18.80%
Average Drawdown Average peak-to-trough decline	-43.18%	-91.08%	+47.90%
Ulcer Index Depth and duration of drawdowns from previous peaks	45.88%	46.35%	-0.47%

Volatility

AIYY vs. SMST - Volatility Comparison

The current volatility for YieldMax AI Option Income Strategy ETF (AIYY) is 9.98%, while Defiance Daily Target 2X Short MSTR ETF (SMST) has a volatility of 38.14%. This indicates that AIYY 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

	AIYY	SMST	Difference
Volatility (1M) Calculated over the trailing 1-month period	9.98%	38.14%	-28.16%
Volatility (6M) Calculated over the trailing 6-month period	39.51%	135.29%	-95.78%
Volatility (1Y) Calculated over the trailing 1-year period	53.88%	151.04%	-97.16%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	49.87%	166.75%	-116.88%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	49.87%	166.75%	-116.88%

AIYY vs. SMST - Expense Ratio Comparison

AIYY has a 0.99% expense ratio, which is lower than SMST's 1.29% expense ratio.

Dividends

AIYY vs. SMST - Dividend Comparison

AIYY's dividend yield for the trailing twelve months is around 139.29%, while SMST has not paid dividends to shareholders.

Position	TTM	2025	2024
AIYY YieldMax AI Option Income Strategy ETF	139.29%	168.33%	98.26%
SMST Defiance Daily Target 2X Short MSTR ETF	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both AIYY and SMST in my portfolio?

AIYY and SMST have a correlation of -0.45, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, AIYY or SMST?

SMST has higher volatility (38.14%) compared to AIYY (9.98%). In terms of maximum drawdown, AIYY dropped -80.28% vs SMST's -99.25%.

Which ETF is better, AIYY or SMST?

On 1-year performance, SMST leads with 128.37% vs -58.45% for AIYY. On fees, AIYY is cheaper at 0.99% per year. On volatility, AIYY has been the lower-risk option at 9.98%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, AIYY or SMST?

Over the 1-year period, SMST has performed better with a 128.37% return vs -58.45%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, AIYY or SMST?

AIYY is cheaper with a 0.99% expense ratio, compared with 1.29% for SMST.

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

AIYY has the higher dividend yield at 139.29%, compared with 0.00% for SMST.

What is the main difference between AIYY and SMST?

AIYY is categorized as Derivative Income, while SMST is Inverse Equities. They also come from different issuers: YieldMax and Defiance. Their fees differ too: 0.99% for AIYY and 1.29% for SMST.

Which has better risk-adjusted returns?

SMST currently has the higher Sharpe Ratio (1.13 vs -1.12), 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.