BAGY vs. SMST

Last updated Jul 12, 2026

BAGY (Amplify Bitcoin Max Income Covered Call ETF) and SMST (Defiance Daily Target 2X Short MSTR ETF) are both exchange-traded funds - BAGY is a Derivative Income fund actively managed by Amplify, while SMST is a Inverse Equities fund actively managed by Defiance. Both are actively managed. Over the past year, BAGY returned -44.81% vs 223.04% for SMST. At a correlation of -0.81, they often move in opposite directions. BAGY charges 0.65%/yr vs 1.29%/yr for SMST.

Performance

BAGY vs. SMST - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Amplify Bitcoin Max Income Covered Call ETF (BAGY) 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, BAGY achieves a -25.14% return, which is significantly higher than SMST's -31.56% return.

BAGY

• 1D: 1.32%
• 1M: -1.70%
• 6M: -27.88%
• YTD: -25.14%
• 1Y: -44.81%
• 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)

BAGY vs. SMST - Yearly Performance Comparison

	2026 (YTD)	2025
BAGY Amplify Bitcoin Max Income Covered Call ETF	-25.14%	-8.33%
SMST Defiance Daily Target 2X Short MSTR ETF	-31.56%	190.00%

Correlation

The correlation between BAGY and SMST is -0.83, 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	-0.83
Correlation (All Time) Calculated using the full available price history since Apr 29, 2025	-0.81

The correlation between BAGY and SMST has been stable across timeframes, ranging from -0.83 to -0.81 - a consistent structural relationship.

Return for Risk

BAGY vs. SMST — Risk / Return Rank

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

BAGY

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

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.

BAGY vs. SMST - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Amplify Bitcoin Max Income Covered Call ETF (BAGY) 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.

	BAGY	SMST	Difference
Sharpe ratio: Return per unit of total volatility	-1.04	1.37	-2.41
Sortino ratio: Return per unit of downside risk	-1.52	2.22	-3.74
Omega ratio: Gain probability vs. loss probability	0.82	1.29	-0.46
Calmar ratio: Return relative to maximum drawdown	-0.88	2.39	-3.27
Martin ratio: Return relative to average drawdown	-1.47	4.64	-6.11

BAGY vs. SMST - Sharpe Ratio Comparison

The current BAGY Sharpe Ratio is -1.04, which is lower than the SMST Sharpe Ratio of 1.37. The chart below compares the historical Sharpe Ratios of BAGY 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

BAGY vs. SMST - Drawdown Comparison

The maximum BAGY drawdown since its inception was -50.68%, smaller than the maximum SMST drawdown of -99.25%. Use the drawdown chart below to compare losses from any high point for BAGY and SMST.

Drawdown Indicators

	BAGY	SMST	Difference
Max Drawdown Largest peak-to-trough decline	-50.68%	-99.25%	+48.57%
Max Drawdown (1Y) Largest decline over 1 year	-50.68%	-85.39%	+34.71%
Current Drawdown Current decline from peak	-47.33%	-97.31%	+49.98%
Average Drawdown Average peak-to-trough decline	-21.88%	-90.88%	+69.00%
Ulcer Index Depth and duration of drawdowns from previous peaks	30.28%	43.98%	-13.70%

Volatility

BAGY vs. SMST - Volatility Comparison

The current volatility for Amplify Bitcoin Max Income Covered Call ETF (BAGY) is 10.51%, while Defiance Daily Target 2X Short MSTR ETF (SMST) has a volatility of 56.47%. This indicates that BAGY 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

	BAGY	SMST	Difference
Volatility (1M) Calculated over the trailing 1-month period	10.51%	56.47%	-45.96%
Volatility (6M) Calculated over the trailing 6-month period	34.37%	135.94%	-101.57%
Volatility (1Y) Calculated over the trailing 1-year period	43.08%	149.09%	-106.01%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	41.05%	167.87%	-126.82%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	41.05%	167.87%	-126.82%

BAGY vs. SMST - Expense Ratio Comparison

BAGY has a 0.65% expense ratio, which is lower than SMST's 1.29% expense ratio.

Dividends

BAGY vs. SMST - Dividend Comparison

BAGY's dividend yield for the trailing twelve months is around 58.58%, while SMST has not paid dividends to shareholders.

Position	TTM	2025
BAGY Amplify Bitcoin Max Income Covered Call ETF	58.58%	30.16%
SMST Defiance Daily Target 2X Short MSTR ETF	0.00%	0.00%

Frequently Asked Questions

Can I hold both BAGY and SMST in my portfolio?

BAGY and SMST have a correlation of -0.83, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, BAGY or SMST?

SMST has higher volatility (56.47%) compared to BAGY (10.51%). In terms of maximum drawdown, BAGY dropped -50.68% vs SMST's -99.25%.

Which ETF is better, BAGY or SMST?

On 1-year performance, SMST leads with 223.04% vs -44.81% for BAGY. On fees, BAGY is cheaper at 0.65% per year. On volatility, BAGY has been the lower-risk option at 10.51%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, BAGY or SMST?

Over the 1-year period, SMST has performed better with a 223.04% return vs -44.81%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, BAGY or SMST?

BAGY is cheaper with a 0.65% expense ratio, compared with 1.29% for SMST.

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

BAGY has the higher dividend yield at 58.58%, compared with 0.00% for SMST.

What is the main difference between BAGY and SMST?

BAGY is categorized as Derivative Income, while SMST is Inverse Equities. They also come from different issuers: Amplify and Defiance. Their fees differ too: 0.65% for BAGY and 1.29% for SMST.

Which has better risk-adjusted returns?

SMST currently has the higher Sharpe Ratio (1.37 vs -1.04), 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.