BALI vs. SMST

Last updated Aug 1, 2026

BALI (Blackrock Advantage Large Cap Income ETF) and SMST (Defiance Daily Target 2X Short MSTR ETF) are both exchange-traded funds - BALI is a Derivative Income fund actively managed by BlackRock, while SMST is a Inverse Equities fund actively managed by Defiance. Both are actively managed. Over the past year, BALI returned 23.42% vs 128.37% for SMST. Their -0.43 correlation means they have often moved in opposite directions in the past. BALI charges 0.35%/yr vs 1.29%/yr for SMST.

Performance

BALI vs. SMST - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Blackrock Advantage Large Cap Income ETF (BALI) 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, BALI achieves a 12.53% return, which is significantly higher than SMST's -35.77% return.

BALI

• 1D: 0.56%
• 1M: 1.43%
• 6M: 10.03%
• YTD: 12.53%
• 1Y: 23.42%
• 3Y*: —
• 5Y*: —
• 10Y*: —
• ALL TIME*: 21.30%

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)
BALI Blackrock Advantage Large Cap Income ETF	$7.45M	$7.43M	$9.08M
SMST Defiance Daily Target 2X Short MSTR ETF	$15.35M	$15.12M	$17.58M

BALI vs. SMST - Yearly Performance Comparison

	2026 (YTD)	2025	2024
BALI Blackrock Advantage Large Cap Income ETF	12.53%	14.51%	4.82%
SMST Defiance Daily Target 2X Short MSTR ETF	-35.77%	-44.36%	-91.71%

Correlation

The correlation between BALI and SMST is -0.49, 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.	-0.49
Correlation (All Time) Calculated using the full available price history since Aug 21, 2024	-0.43

Return for Risk

BALI vs. SMST — Risk / Return Rank

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

BALI

BALI Risk / Return Rank: 87
BALI Sharpe Ratio Rank: 86
BALI Sortino Ratio Rank: 85
BALI Omega Ratio Rank: 86
BALI Calmar Ratio Rank: 85
BALI Martin Ratio Rank: 91

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.

BALI vs. SMST - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Blackrock Advantage Large Cap Income ETF (BALI) 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.

	BALI	SMST	Difference
Sharpe ratio: Return per unit of total volatility	2.02	1.13	+0.89
Sortino ratio: Return per unit of downside risk	2.80	2.09	+0.70
Omega ratio: Gain probability vs. loss probability	1.37	1.27	+0.11
Calmar ratio: Return relative to maximum drawdown	3.23	2.00	+1.23
Martin ratio: Return relative to average drawdown	15.05	3.68	+11.38

BALI vs. SMST - Sharpe Ratio Comparison

The current BALI Sharpe Ratio is 2.02, which is higher than the SMST Sharpe Ratio of 1.13. The chart below compares the historical Sharpe Ratios of BALI 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

BALI vs. SMST - Drawdown Comparison

The maximum BALI drawdown since its inception was -16.65%, smaller than the maximum SMST drawdown of -99.25%. Use the drawdown chart below to compare losses from any high point for BALI and SMST.

Drawdown Indicators

	BALI	SMST	Difference
Max Drawdown Largest peak-to-trough decline	-16.65%	-99.25%	+82.60%
Max Drawdown (1Y) Largest decline over 1 year	-6.71%	-85.39%	+78.68%
Current Drawdown Current decline from peak	0.00%	-97.48%	+97.48%
Average Drawdown Average peak-to-trough decline	-1.60%	-91.08%	+89.48%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.44%	46.35%	-44.91%

Volatility

BALI vs. SMST - Volatility Comparison

The current volatility for Blackrock Advantage Large Cap Income ETF (BALI) is 2.93%, while Defiance Daily Target 2X Short MSTR ETF (SMST) has a volatility of 38.14%. This indicates that BALI 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

	BALI	SMST	Difference
Volatility (1M) Calculated over the trailing 1-month period	2.93%	38.14%	-35.21%
Volatility (6M) Calculated over the trailing 6-month period	8.42%	135.29%	-126.87%
Volatility (1Y) Calculated over the trailing 1-year period	10.73%	151.04%	-140.31%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	12.90%	166.75%	-153.85%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	12.90%	166.75%	-153.85%

BALI vs. SMST - Expense Ratio Comparison

BALI has a 0.35% expense ratio, which is lower than SMST's 1.29% expense ratio.

Dividends

BALI vs. SMST - Dividend Comparison

BALI's dividend yield for the trailing twelve months is around 7.82%, while SMST has not paid dividends to shareholders.

Position	TTM	2025	2024	2023
BALI Blackrock Advantage Large Cap Income ETF	7.23%	8.51%	7.13%	2.13%
SMST Defiance Daily Target 2X Short MSTR ETF	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both BALI and SMST in my portfolio?

BALI and SMST have a correlation of -0.49, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, BALI or SMST?

SMST has higher volatility (38.14%) compared to BALI (2.93%). In terms of maximum drawdown, BALI dropped -16.65% vs SMST's -99.25%.

Which ETF is better, BALI or SMST?

On 1-year performance, SMST leads with 128.37% vs 23.42% for BALI. On fees, BALI is cheaper at 0.35% per year. On volatility, BALI has been the lower-risk option at 2.93%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, BALI or SMST?

Over the 1-year period, SMST has performed better with a 128.37% return vs 23.42%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, BALI or SMST?

BALI is cheaper with a 0.35% expense ratio, compared with 1.29% for SMST.

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

BALI has the higher dividend yield at 7.23%, compared with 0.00% for SMST.

What is the main difference between BALI and SMST?

BALI is categorized as Derivative Income, while SMST is Inverse Equities. They also come from different issuers: BlackRock and Defiance. Their fees differ too: 0.35% for BALI and 1.29% for SMST.

Which has better risk-adjusted returns?

BALI currently has the higher Sharpe Ratio (2.02 vs 1.13), 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.