BAI vs. SMST

Last updated Jul 12, 2026

BAI (iShares A.I. Innovation and Tech Active ETF) and SMST (Defiance Daily Target 2X Short MSTR ETF) are both exchange-traded funds - BAI is a Technology Equities fund actively managed by iShares, while SMST is a Inverse Equities fund actively managed by Defiance. Both are actively managed. Over the past year, BAI returned 68.60% vs 223.04% for SMST. At a correlation of -0.42, they often move in opposite directions. BAI charges 0.55%/yr vs 1.29%/yr for SMST.

Performance

BAI vs. SMST - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares A.I. Innovation and Tech Active ETF (BAI) 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, BAI achieves a 43.27% return, which is significantly higher than SMST's -31.56% return.

BAI

• 1D: -0.71%
• 1M: -2.51%
• 6M: 38.97%
• YTD: 43.27%
• 1Y: 68.60%
• 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)

BAI vs. SMST - Yearly Performance Comparison

	2026 (YTD)	2025	2024
BAI iShares A.I. Innovation and Tech Active ETF	43.27%	25.22%	8.89%
SMST Defiance Daily Target 2X Short MSTR ETF	-31.56%	-44.36%	-77.06%

Correlation

The correlation between BAI and SMST is -0.41, 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	-0.41
Correlation (All Time) Calculated using the full available price history since Oct 22, 2024	-0.42

Return for Risk

BAI vs. SMST — Risk / Return Rank

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

BAI

BAI Risk / Return Rank: 68
BAI Sharpe Ratio Rank: 65
BAI Sortino Ratio Rank: 55
BAI Omega Ratio Rank: 59
BAI Calmar Ratio Rank: 89
BAI Martin Ratio Rank: 71

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.

BAI vs. SMST - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares A.I. Innovation and Tech Active ETF (BAI) 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.

	BAI	SMST	Difference
Sharpe ratio: Return per unit of total volatility	1.72	1.37	+0.35
Sortino ratio: Return per unit of downside risk	2.15	2.22	-0.06
Omega ratio: Gain probability vs. loss probability	1.29	1.29	0.00
Calmar ratio: Return relative to maximum drawdown	4.19	2.39	+1.79
Martin ratio: Return relative to average drawdown	10.34	4.64	+5.70

BAI vs. SMST - Sharpe Ratio Comparison

The current BAI Sharpe Ratio is 1.72, which is comparable to the SMST Sharpe Ratio of 1.37. The chart below compares the historical Sharpe Ratios of BAI 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

BAI vs. SMST - Drawdown Comparison

The maximum BAI drawdown since its inception was -34.09%, smaller than the maximum SMST drawdown of -99.25%. Use the drawdown chart below to compare losses from any high point for BAI and SMST.

Drawdown Indicators

	BAI	SMST	Difference
Max Drawdown Largest peak-to-trough decline	-34.09%	-99.25%	+65.16%
Max Drawdown (1Y) Largest decline over 1 year	-16.22%	-85.39%	+69.17%
Current Drawdown Current decline from peak	-12.02%	-97.31%	+85.29%
Average Drawdown Average peak-to-trough decline	-6.96%	-90.88%	+83.92%
Ulcer Index Depth and duration of drawdowns from previous peaks	6.55%	43.98%	-37.43%

Volatility

BAI vs. SMST - Volatility Comparison

The current volatility for iShares A.I. Innovation and Tech Active ETF (BAI) is 20.30%, while Defiance Daily Target 2X Short MSTR ETF (SMST) has a volatility of 56.47%. This indicates that BAI 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

	BAI	SMST	Difference
Volatility (1M) Calculated over the trailing 1-month period	20.30%	56.47%	-36.17%
Volatility (6M) Calculated over the trailing 6-month period	34.02%	135.94%	-101.92%
Volatility (1Y) Calculated over the trailing 1-year period	39.38%	149.09%	-109.71%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	38.25%	167.87%	-129.62%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	38.25%	167.87%	-129.62%

BAI vs. SMST - Expense Ratio Comparison

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

Dividends

BAI vs. SMST - Dividend Comparison

BAI's dividend yield for the trailing twelve months is around 1.24%, while SMST has not paid dividends to shareholders.

Position	TTM	2025
BAI iShares A.I. Innovation and Tech Active ETF	1.24%	1.80%
SMST Defiance Daily Target 2X Short MSTR ETF	0.00%	0.00%

Frequently Asked Questions

Can I hold both BAI and SMST in my portfolio?

BAI and SMST have a correlation of -0.41, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, BAI or SMST?

SMST has higher volatility (56.47%) compared to BAI (20.30%). In terms of maximum drawdown, BAI dropped -34.09% vs SMST's -99.25%.

Which ETF is better, BAI or SMST?

On 1-year performance, SMST leads with 223.04% vs 68.60% for BAI. On fees, BAI is cheaper at 0.55% per year. On volatility, BAI has been the lower-risk option at 20.30%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, BAI or SMST?

Over the 1-year period, SMST has performed better with a 223.04% return vs 68.60%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, BAI or SMST?

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

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

BAI has the higher dividend yield at 1.24%, compared with 0.00% for SMST.

What is the main difference between BAI and SMST?

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

Which has better risk-adjusted returns?

BAI currently has the higher Sharpe Ratio (1.72 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.