BITQ vs. SMST

Last updated Jul 15, 2026

BITQ (Bitwise Crypto Industry Innovators ETF) and SMST (Defiance Daily Target 2X Short MSTR ETF) are both exchange-traded funds - BITQ is a Blockchain fund tracking the Bitwise Crypto Innovators 30 Index, while SMST is a Inverse Equities fund actively managed by Defiance. BITQ is passively managed, while SMST is actively managed. Over the past year, BITQ returned 10.66% vs 223.39% for SMST. At a correlation of -0.73, they often move in opposite directions. BITQ charges 0.85%/yr vs 1.29%/yr for SMST.

Performance

BITQ vs. SMST - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Bitwise Crypto Industry Innovators ETF (BITQ) 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, BITQ achieves a 18.26% return, which is significantly higher than SMST's -36.68% return.

BITQ

• 1D: 1.68%
• 1M: -11.99%
• 6M: -0.04%
• YTD: 18.26%
• 1Y: 10.66%
• 3Y*: 31.35%
• 5Y*: 4.48%
• 10Y*: —

SMST

• 1D: -12.10%
• 1M: 26.91%
• 6M: -13.52%
• YTD: -36.68%
• 1Y: 223.39%
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

BITQ vs. SMST - Yearly Performance Comparison

	2026 (YTD)	2025	2024
BITQ Bitwise Crypto Industry Innovators ETF	18.26%	18.00%	34.55%
SMST Defiance Daily Target 2X Short MSTR ETF	-36.68%	-44.36%	-91.71%

Correlation

The correlation between BITQ and SMST is -0.70, 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	-0.70
Correlation (All Time) Calculated using the full available price history since Aug 21, 2024	-0.73

The correlation between BITQ and SMST has been stable across timeframes, ranging from -0.73 to -0.70 - a consistent structural relationship.

Return for Risk

BITQ vs. SMST — Risk / Return Rank

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

BITQ

BITQ Risk / Return Rank: 13
BITQ Sharpe Ratio Rank: 12
BITQ Sortino Ratio Rank: 16
BITQ Omega Ratio Rank: 15
BITQ Calmar Ratio Rank: 12
BITQ Martin Ratio Rank: 12

SMST

SMST Risk / Return Rank: 56
SMST Sharpe Ratio Rank: 55
SMST Sortino Ratio Rank: 60
SMST Omega Ratio Rank: 61
SMST Calmar Ratio Rank: 66
SMST Martin Ratio Rank: 40

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.

BITQ vs. SMST - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Bitwise Crypto Industry Innovators ETF (BITQ) 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.

	BITQ	SMST	Difference
Sharpe ratio: Return per unit of total volatility	0.19	1.51	-1.32
Sortino ratio: Return per unit of downside risk	0.67	2.28	-1.61
Omega ratio: Gain probability vs. loss probability	1.08	1.30	-0.22
Calmar ratio: Return relative to maximum drawdown	0.24	2.63	-2.40
Martin ratio: Return relative to average drawdown	0.49	5.07	-4.59

BITQ vs. SMST - Sharpe Ratio Comparison

The current BITQ Sharpe Ratio is 0.19, which is lower than the SMST Sharpe Ratio of 1.51. The chart below compares the historical Sharpe Ratios of BITQ 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

BITQ vs. SMST - Drawdown Comparison

The maximum BITQ drawdown since its inception was -90.32%, smaller than the maximum SMST drawdown of -99.25%. Use the drawdown chart below to compare losses from any high point for BITQ and SMST.

Drawdown Indicators

	BITQ	SMST	Difference
Max Drawdown Largest peak-to-trough decline	-90.32%	-99.25%	+8.93%
Max Drawdown (1Y) Largest decline over 1 year	-44.99%	-85.39%	+40.40%
Max Drawdown (3Y) Largest decline over 3 years	-51.22%	—	—
Max Drawdown (5Y) Largest decline over 5 years	-90.32%	—	—
Current Drawdown Current decline from peak	-27.30%	-97.51%	+70.21%
Average Drawdown Average peak-to-trough decline	-52.23%	-90.91%	+38.68%
Ulcer Index Depth and duration of drawdowns from previous peaks	22.02%	44.25%	-22.23%

Volatility

BITQ vs. SMST - Volatility Comparison

The current volatility for Bitwise Crypto Industry Innovators ETF (BITQ) is 12.18%, while Defiance Daily Target 2X Short MSTR ETF (SMST) has a volatility of 57.45%. This indicates that BITQ 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

	BITQ	SMST	Difference
Volatility (1M) Calculated over the trailing 1-month period	12.18%	57.45%	-45.27%
Volatility (6M) Calculated over the trailing 6-month period	42.48%	136.03%	-93.55%
Volatility (1Y) Calculated over the trailing 1-year period	57.13%	149.51%	-92.38%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	67.31%	167.79%	-100.48%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	67.04%	167.79%	-100.75%

BITQ vs. SMST - Expense Ratio Comparison

BITQ has a 0.85% expense ratio, which is lower than SMST's 1.29% expense ratio.

Dividends

BITQ vs. SMST - Dividend Comparison

Neither BITQ nor SMST has paid dividends to shareholders.

Position	TTM	2025	2024	2023	2022	2021
BITQ Bitwise Crypto Industry Innovators ETF	0.00%	0.00%	0.90%	1.51%	0.00%	3.12%
SMST Defiance Daily Target 2X Short MSTR ETF	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both BITQ and SMST in my portfolio?

BITQ and SMST have a correlation of -0.70, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, BITQ or SMST?

SMST has higher volatility (57.45%) compared to BITQ (12.18%). In terms of maximum drawdown, BITQ dropped -90.32% vs SMST's -99.25%.

Which ETF is better, BITQ or SMST?

On 1-year performance, SMST leads with 223.39% vs 10.66% for BITQ. On fees, BITQ is cheaper at 0.85% per year. On volatility, BITQ has been the lower-risk option at 12.18%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, BITQ or SMST?

Over the 1-year period, SMST has performed better with a 223.39% return vs 10.66%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, BITQ or SMST?

BITQ is cheaper with a 0.85% expense ratio, compared with 1.29% for SMST.

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

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

What is the main difference between BITQ and SMST?

BITQ is categorized as Blockchain, while SMST is Inverse Equities. They also come from different issuers: Bitwise and Defiance. Their fees differ too: 0.85% for BITQ and 1.29% for SMST.

Which has better risk-adjusted returns?

SMST currently has the higher Sharpe Ratio (1.51 vs 0.19), 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.