BAUG vs. SMST

Last updated Jul 14, 2026

BAUG (Innovator U.S. Equity Buffer ETF - August) and SMST (Defiance Daily Target 2X Short MSTR ETF) are both exchange-traded funds - BAUG is a Defined Outcome fund tracking the Cboe S&P 500 Buffer Protect Index August, while SMST is a Inverse Equities fund actively managed by Defiance. BAUG is passively managed, while SMST is actively managed. Over the past year, BAUG returned 16.09% vs 240.03% for SMST. At a correlation of -0.47, they often move in opposite directions. BAUG charges 0.79%/yr vs 1.29%/yr for SMST.

Performance

BAUG vs. SMST - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Innovator U.S. Equity Buffer ETF - August (BAUG) 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, BAUG achieves a 7.62% return, which is significantly higher than SMST's -27.96% return.

BAUG

• 1D: -0.19%
• 1M: 1.33%
• 6M: 6.48%
• YTD: 7.62%
• 1Y: 16.09%
• 3Y*: 16.68%
• 5Y*: 11.25%
• 10Y*: —

SMST

• 1D: 5.26%
• 1M: 44.38%
• 6M: -15.07%
• YTD: -27.96%
• 1Y: 240.03%
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

BAUG vs. SMST - Yearly Performance Comparison

	2026 (YTD)	2025	2024
BAUG Innovator U.S. Equity Buffer ETF - August	7.62%	14.81%	4.18%
SMST Defiance Daily Target 2X Short MSTR ETF	-27.96%	-44.36%	-91.71%

Correlation

The correlation between BAUG and SMST is -0.48, 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	-0.48
Correlation (All Time) Calculated using the full available price history since Aug 21, 2024	-0.47

Return for Risk

BAUG vs. SMST — Risk / Return Rank

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

BAUG

BAUG Risk / Return Rank: 83
BAUG Sharpe Ratio Rank: 84
BAUG Sortino Ratio Rank: 86
BAUG Omega Ratio Rank: 87
BAUG Calmar Ratio Rank: 71
BAUG Martin Ratio Rank: 87

SMST

SMST Risk / Return Rank: 60
SMST Sharpe Ratio Rank: 62
SMST Sortino Ratio Rank: 63
SMST Omega Ratio Rank: 63
SMST Calmar Ratio Rank: 71
SMST Martin Ratio Rank: 43

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.

BAUG vs. SMST - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Innovator U.S. Equity Buffer ETF - August (BAUG) 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.

	BAUG	SMST	Difference
Sharpe ratio: Return per unit of total volatility	2.12	1.62	+0.50
Sortino ratio: Return per unit of downside risk	3.08	2.33	+0.75
Omega ratio: Gain probability vs. loss probability	1.42	1.30	+0.11
Calmar ratio: Return relative to maximum drawdown	2.86	2.83	+0.03
Martin ratio: Return relative to average drawdown	14.40	5.47	+8.93

BAUG vs. SMST - Sharpe Ratio Comparison

The current BAUG Sharpe Ratio is 2.12, which is higher than the SMST Sharpe Ratio of 1.62. The chart below compares the historical Sharpe Ratios of BAUG 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

BAUG vs. SMST - Drawdown Comparison

The maximum BAUG drawdown since its inception was -24.19%, smaller than the maximum SMST drawdown of -99.25%. Use the drawdown chart below to compare losses from any high point for BAUG and SMST.

Drawdown Indicators

	BAUG	SMST	Difference
Max Drawdown Largest peak-to-trough decline	-24.19%	-99.25%	+75.06%
Max Drawdown (1Y) Largest decline over 1 year	-5.66%	-85.39%	+79.73%
Max Drawdown (3Y) Largest decline over 3 years	-13.78%	—	—
Max Drawdown (5Y) Largest decline over 5 years	-15.59%	—	—
Current Drawdown Current decline from peak	-0.19%	-97.17%	+96.98%
Average Drawdown Average peak-to-trough decline	-2.81%	-90.89%	+88.08%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.12%	44.09%	-42.97%

Volatility

BAUG vs. SMST - Volatility Comparison

The current volatility for Innovator U.S. Equity Buffer ETF - August (BAUG) is 1.92%, while Defiance Daily Target 2X Short MSTR ETF (SMST) has a volatility of 56.59%. This indicates that BAUG 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

	BAUG	SMST	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.92%	56.59%	-54.67%
Volatility (6M) Calculated over the trailing 6-month period	6.04%	135.88%	-129.84%
Volatility (1Y) Calculated over the trailing 1-year period	7.64%	149.23%	-141.59%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	11.74%	167.74%	-156.00%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	13.87%	167.74%	-153.87%

BAUG vs. SMST - Expense Ratio Comparison

BAUG has a 0.79% expense ratio, which is lower than SMST's 1.29% expense ratio.

Dividends

BAUG vs. SMST - Dividend Comparison

Neither BAUG nor SMST has paid dividends to shareholders.

Tickers have no history of dividend payments

Frequently Asked Questions

Can I hold both BAUG and SMST in my portfolio?

BAUG and SMST have a correlation of -0.48, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, BAUG or SMST?

SMST has higher volatility (56.59%) compared to BAUG (1.92%). In terms of maximum drawdown, BAUG dropped -24.19% vs SMST's -99.25%.

Which ETF is better, BAUG or SMST?

On 1-year performance, SMST leads with 240.03% vs 16.09% for BAUG. On fees, BAUG is cheaper at 0.79% per year. On volatility, BAUG has been the lower-risk option at 1.92%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, BAUG or SMST?

Over the 1-year period, SMST has performed better with a 240.03% return vs 16.09%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, BAUG or SMST?

BAUG is cheaper with a 0.79% expense ratio, compared with 1.29% for SMST.

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

BAUG and SMST have nearly identical dividend yields, around 0.00%.

What is the main difference between BAUG and SMST?

BAUG is categorized as Defined Outcome, while SMST is Inverse Equities. They also come from different issuers: Innovator and Defiance. Their fees differ too: 0.79% for BAUG and 1.29% for SMST.

Which has better risk-adjusted returns?

BAUG currently has the higher Sharpe Ratio (2.12 vs 1.62), 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.