AVS vs. SMST

Last updated Jun 5, 2026

AVS (Direxion Daily AVGO Bear 1X Shares) and SMST (Defiance Daily Target 2X Short MSTR ETF) are both Inverse Equities funds. Both are actively managed. Over the past year, AVS returned -46.04% vs 61.22% for SMST. At a 0.29 correlation, their price movements are largely independent. AVS charges 0.98%/yr vs 1.29%/yr for SMST.

Performance

AVS vs. SMST - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Direxion Daily AVGO Bear 1X Shares (AVS) 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, AVS achieves a -22.61% return, which is significantly higher than SMST's -51.70% return.

AVS

• 1D: 12.36%
• 1M: -0.75%
• YTD: -22.61%
• 6M: -16.23%
• 1Y: -46.04%
• 3Y*: —
• 5Y*: —
• 10Y*: —

SMST

• 1D: -4.37%
• 1M: 82.90%
• YTD: -51.70%
• 6M: -32.23%
• 1Y: 61.22%
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

AVS vs. SMST - Yearly Performance Comparison

	2026 (YTD)	2025	2024
AVS Direxion Daily AVGO Bear 1X Shares	-22.61%	-45.96%	-27.15%
SMST Defiance Daily Target 2X Short MSTR ETF	-51.70%	-44.36%	-83.87%

Correlation

The correlation between AVS and SMST is 0.28, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.28
Correlation (All Time) Calculated using the full available price history since Oct 11, 2024	0.29

Return for Risk

AVS vs. SMST — Risk / Return Rank

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

AVS

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

SMST

SMST Risk / Return Rank: 22
SMST Sharpe Ratio Rank: 16
SMST Sortino Ratio Rank: 29
SMST Omega Ratio Rank: 30
SMST Calmar Ratio Rank: 18
SMST Martin Ratio Rank: 16

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.

AVS vs. SMST - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Direxion Daily AVGO Bear 1X Shares (AVS) 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.

	AVS	SMST	Difference
Sharpe ratio: Return per unit of total volatility	-1.03	0.44	-1.47
Sortino ratio: Return per unit of downside risk	-1.53	1.55	-3.08
Omega ratio: Gain probability vs. loss probability	0.81	1.20	-0.38
Calmar ratio: Return relative to maximum drawdown	-0.84	0.72	-1.56
Martin ratio: Return relative to average drawdown	-1.41	1.50	-2.91
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

AVS vs. SMST - Sharpe Ratio Comparison

The current AVS Sharpe Ratio is -1.03, which is lower than the SMST Sharpe Ratio of 0.44. The chart below compares the historical Sharpe Ratios of AVS 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.

Sharpe Ratios by Period

	AVS	SMST	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	-1.03	0.44	-1.47
Sharpe Ratio (All Time) Calculated using the full available price history	-0.96	-0.53	-0.44

Drawdowns

AVS vs. SMST - Drawdown Comparison

The maximum AVS drawdown since its inception was -76.77%, smaller than the maximum SMST drawdown of -99.25%. Use the drawdown chart below to compare losses from any high point for AVS and SMST.

Drawdown Indicators

	AVS	SMST	Difference
Max Drawdown Largest peak-to-trough decline	-76.77%	-99.25%	+22.48%
Max Drawdown (1Y) Largest decline over 1 year	-55.22%	-85.39%	+30.17%
Current Drawdown Current decline from peak	-73.73%	-98.10%	+24.37%
Average Drawdown Average peak-to-trough decline	-48.93%	-90.68%	+41.75%
Ulcer Index Depth and duration of drawdowns from previous peaks	32.58%	40.97%	-8.39%

Volatility

AVS vs. SMST - Volatility Comparison

The current volatility for Direxion Daily AVGO Bear 1X Shares (AVS) is 17.18%, while Defiance Daily Target 2X Short MSTR ETF (SMST) has a volatility of 37.55%. This indicates that AVS 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

	AVS	SMST	Difference
Volatility (1M) Calculated over the trailing 1-month period	17.18%	37.55%	-20.37%
Volatility (6M) Calculated over the trailing 6-month period	32.88%	126.04%	-93.16%
Volatility (1Y) Calculated over the trailing 1-year period	44.81%	140.75%	-95.94%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	53.72%	166.63%	-112.91%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	53.72%	166.63%	-112.91%

AVS vs. SMST - Expense Ratio Comparison

AVS has a 0.98% expense ratio, which is lower than SMST's 1.29% expense ratio.

Dividends

AVS vs. SMST - Dividend Comparison

AVS's dividend yield for the trailing twelve months is around 3.94%, while SMST has not paid dividends to shareholders.

Position	TTM	2025	2024
AVS Direxion Daily AVGO Bear 1X Shares	3.94%	4.22%	1.63%
SMST Defiance Daily Target 2X Short MSTR ETF	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both AVS and SMST in my portfolio?

AVS and SMST have a correlation of 0.28, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, AVS or SMST?

SMST has higher volatility (37.55%) compared to AVS (17.18%). In terms of maximum drawdown, AVS dropped -76.77% vs SMST's -99.25%.

Which ETF is better, AVS or SMST?

On 1-year performance, SMST leads with 61.22% vs -46.04% for AVS. On fees, AVS is cheaper at 0.98% per year. On volatility, AVS has been the lower-risk option at 17.18%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, AVS or SMST?

Over the 1-year period, SMST has performed better with a 61.22% return vs -46.04%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, AVS or SMST?

AVS is cheaper with a 0.98% expense ratio, compared with 1.29% for SMST.

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

AVS has the higher dividend yield at 3.94%, compared with 0.00% for SMST.

What is the main difference between AVS and SMST?

They also come from different issuers: Direxion and Defiance. Their fees differ too: 0.98% for AVS and 1.29% for SMST.

Which has better risk-adjusted returns?

SMST currently has the higher Sharpe Ratio (0.44 vs -1.03), 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.