ALAI vs. SMST

Last updated Jul 15, 2026

ALAI (Alger AI Enablers & Adopters ETF) and SMST (Defiance Daily Target 2X Short MSTR ETF) are both exchange-traded funds - ALAI is a Technology Equities fund actively managed by Alger, while SMST is a Inverse Equities fund actively managed by Defiance. Both are actively managed. Over the past year, ALAI returned 45.29% vs 223.39% for SMST. At a correlation of -0.47, they often move in opposite directions. ALAI charges 0.55%/yr vs 1.29%/yr for SMST.

Performance

ALAI vs. SMST - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Alger AI Enablers & Adopters ETF (ALAI) 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, ALAI achieves a 22.29% return, which is significantly higher than SMST's -36.68% return.

ALAI

• 1D: -0.20%
• 1M: 1.80%
• 6M: 18.33%
• YTD: 22.29%
• 1Y: 45.29%
• 3Y*: —
• 5Y*: —
• 10Y*: —

SMST

• 1D: -12.10%
• 1M: 26.91%
• 6M: -13.52%
• YTD: -36.68%
• 1Y: 223.39%
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

ALAI vs. SMST - Yearly Performance Comparison

	2026 (YTD)	2025	2024
ALAI Alger AI Enablers & Adopters ETF	22.29%	39.81%	20.35%
SMST Defiance Daily Target 2X Short MSTR ETF	-36.68%	-44.36%	-91.71%

Correlation

The correlation between ALAI and SMST is -0.47, 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	-0.47
Correlation (All Time) Calculated using the full available price history since Aug 21, 2024	-0.47

Return for Risk

ALAI vs. SMST — Risk / Return Rank

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

ALAI

ALAI Risk / Return Rank: 59
ALAI Sharpe Ratio Rank: 67
ALAI Sortino Ratio Rank: 61
ALAI Omega Ratio Rank: 58
ALAI Calmar Ratio Rank: 58
ALAI Martin Ratio Rank: 53

SMST

SMST Risk / Return Rank: 56
SMST Sharpe Ratio Rank: 55
SMST Sortino Ratio Rank: 60
SMST Omega Ratio Rank: 61
SMST Calmar Ratio Rank: 66
SMST Martin Ratio Rank: 40

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.

ALAI vs. SMST - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Alger AI Enablers & Adopters ETF (ALAI) 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.

	ALAI	SMST	Difference
Sharpe ratio: Return per unit of total volatility	1.72	1.51	+0.22
Sortino ratio: Return per unit of downside risk	2.29	2.28	+0.01
Omega ratio: Gain probability vs. loss probability	1.29	1.30	-0.01
Calmar ratio: Return relative to maximum drawdown	2.34	2.63	-0.30
Martin ratio: Return relative to average drawdown	7.22	5.07	+2.15

ALAI vs. SMST - Sharpe Ratio Comparison

The current ALAI Sharpe Ratio is 1.72, which is comparable to the SMST Sharpe Ratio of 1.51. The chart below compares the historical Sharpe Ratios of ALAI 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

ALAI vs. SMST - Drawdown Comparison

The maximum ALAI drawdown since its inception was -29.36%, smaller than the maximum SMST drawdown of -99.25%. Use the drawdown chart below to compare losses from any high point for ALAI and SMST.

Drawdown Indicators

	ALAI	SMST	Difference
Max Drawdown Largest peak-to-trough decline	-29.36%	-99.25%	+69.89%
Max Drawdown (1Y) Largest decline over 1 year	-19.48%	-85.39%	+65.91%
Current Drawdown Current decline from peak	-5.54%	-97.51%	+91.97%
Average Drawdown Average peak-to-trough decline	-5.11%	-90.91%	+85.80%
Ulcer Index Depth and duration of drawdowns from previous peaks	6.29%	44.25%	-37.96%

Volatility

ALAI vs. SMST - Volatility Comparison

The current volatility for Alger AI Enablers & Adopters ETF (ALAI) is 10.17%, while Defiance Daily Target 2X Short MSTR ETF (SMST) has a volatility of 57.45%. This indicates that ALAI 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

	ALAI	SMST	Difference
Volatility (1M) Calculated over the trailing 1-month period	10.17%	57.45%	-47.28%
Volatility (6M) Calculated over the trailing 6-month period	21.27%	136.03%	-114.76%
Volatility (1Y) Calculated over the trailing 1-year period	26.44%	149.51%	-123.07%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	28.86%	167.79%	-138.93%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	28.86%	167.79%	-138.93%

ALAI vs. SMST - Expense Ratio Comparison

ALAI has a 0.55% expense ratio, which is lower than SMST's 1.29% expense ratio.

Dividends

ALAI vs. SMST - Dividend Comparison

ALAI's dividend yield for the trailing twelve months is around 1.23%, while SMST has not paid dividends to shareholders.

Position	TTM	2025	2024
ALAI Alger AI Enablers & Adopters ETF	1.23%	1.50%	0.66%
SMST Defiance Daily Target 2X Short MSTR ETF	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both ALAI and SMST in my portfolio?

ALAI and SMST have a correlation of -0.47, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, ALAI or SMST?

SMST has higher volatility (57.45%) compared to ALAI (10.17%). In terms of maximum drawdown, ALAI dropped -29.36% vs SMST's -99.25%.

Which ETF is better, ALAI or SMST?

On 1-year performance, SMST leads with 223.39% vs 45.29% for ALAI. On fees, ALAI is cheaper at 0.55% per year. On volatility, ALAI has been the lower-risk option at 10.17%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, ALAI or SMST?

Over the 1-year period, SMST has performed better with a 223.39% return vs 45.29%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, ALAI or SMST?

ALAI is cheaper with a 0.55% expense ratio, compared with 1.29% for SMST.

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

ALAI has the higher dividend yield at 1.23%, compared with 0.00% for SMST.

What is the main difference between ALAI and SMST?

ALAI is categorized as Technology Equities, while SMST is Inverse Equities. They also come from different issuers: Alger and Defiance. Their fees differ too: 0.55% for ALAI and 1.29% for SMST.

Which has better risk-adjusted returns?

ALAI currently has the higher Sharpe Ratio (1.72 vs 1.51), 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.