BOEU vs. SMST

Last updated Jun 26, 2026

BOEU (Direxion Daily BA Bull 2X Shares) and SMST (Defiance Daily Target 2X Short MSTR ETF) are both exchange-traded funds - BOEU is a Leveraged Equities fund actively managed by Direxion, while SMST is a Inverse Equities fund actively managed by Defiance. Both are actively managed. Over the past year, BOEU returned -2.84% vs 236.89% for SMST. At a correlation of -0.35, they often move in opposite directions. BOEU charges 0.97%/yr vs 1.29%/yr for SMST.

Performance

BOEU vs. SMST - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Direxion Daily BA Bull 2X Shares (BOEU) 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, BOEU achieves a -9.32% return, which is significantly lower than SMST's -5.14% return.

BOEU

• 1D: -2.20%
• 1M: -2.98%
• YTD: -9.32%
• 6M: -10.52%
• 1Y: -2.84%
• 3Y*: —
• 5Y*: —
• 10Y*: —

SMST

• 1D: 18.45%
• 1M: 181.70%
• YTD: -5.14%
• 6M: 2.86%
• 1Y: 236.89%
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

BOEU vs. SMST - Yearly Performance Comparison

	2026 (YTD)	2025
BOEU Direxion Daily BA Bull 2X Shares	-9.32%	37.74%
SMST Defiance Daily Target 2X Short MSTR ETF	-5.14%	146.81%

Correlation

The correlation between BOEU and SMST is -0.34, 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	-0.34
Correlation (All Time) Calculated using the full available price history since Apr 23, 2025	-0.35

Return for Risk

BOEU vs. SMST — Risk / Return Rank

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

BOEU

BOEU Risk / Return Rank: 9
BOEU Sharpe Ratio Rank: 8
BOEU Sortino Ratio Rank: 11
BOEU Omega Ratio Rank: 11
BOEU Calmar Ratio Rank: 8
BOEU Martin Ratio Rank: 9

SMST

SMST Risk / Return Rank: 53
SMST Sharpe Ratio Rank: 54
SMST Sortino Ratio Rank: 55
SMST Omega Ratio Rank: 54
SMST Calmar Ratio Rank: 64
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.

BOEU vs. SMST - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Direxion Daily BA Bull 2X Shares (BOEU) 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.

	BOEU	SMST	Difference
Sharpe ratio: Return per unit of total volatility	-0.04	1.63	-1.68
Sortino ratio: Return per unit of downside risk	0.41	2.35	-1.94
Omega ratio: Gain probability vs. loss probability	1.05	1.30	-0.25
Calmar ratio: Return relative to maximum drawdown	-0.06	2.79	-2.86
Martin ratio: Return relative to average drawdown	-0.12	5.52	-5.64

BOEU vs. SMST - Sharpe Ratio Comparison

The current BOEU Sharpe Ratio is -0.04, which is lower than the SMST Sharpe Ratio of 1.63. The chart below compares the historical Sharpe Ratios of BOEU 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

BOEU vs. SMST - Drawdown Comparison

The maximum BOEU drawdown since its inception was -46.03%, smaller than the maximum SMST drawdown of -99.25%. Use the drawdown chart below to compare losses from any high point for BOEU and SMST.

Drawdown Indicators

	BOEU	SMST	Difference
Max Drawdown Largest peak-to-trough decline	-46.03%	-99.25%	+53.22%
Max Drawdown (1Y) Largest decline over 1 year	-46.03%	-85.39%	+39.36%
Current Drawdown Current decline from peak	-31.87%	-96.27%	+64.40%
Average Drawdown Average peak-to-trough decline	-17.63%	-90.74%	+73.11%
Ulcer Index Depth and duration of drawdowns from previous peaks	23.28%	43.15%	-19.87%

Volatility

BOEU vs. SMST - Volatility Comparison

The current volatility for Direxion Daily BA Bull 2X Shares (BOEU) is 21.63%, while Defiance Daily Target 2X Short MSTR ETF (SMST) has a volatility of 46.13%. This indicates that BOEU 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

	BOEU	SMST	Difference
Volatility (1M) Calculated over the trailing 1-month period	21.63%	46.13%	-24.50%
Volatility (6M) Calculated over the trailing 6-month period	46.88%	130.40%	-83.52%
Volatility (1Y) Calculated over the trailing 1-year period	64.40%	146.32%	-81.92%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	62.50%	167.25%	-104.75%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	62.50%	167.25%	-104.75%

BOEU vs. SMST - Expense Ratio Comparison

BOEU has a 0.97% expense ratio, which is lower than SMST's 1.29% expense ratio.

Dividends

BOEU vs. SMST - Dividend Comparison

BOEU's dividend yield for the trailing twelve months is around 2.23%, while SMST has not paid dividends to shareholders.

Position	TTM	2025
BOEU Direxion Daily BA Bull 2X Shares	2.23%	1.44%
SMST Defiance Daily Target 2X Short MSTR ETF	0.00%	0.00%

Frequently Asked Questions

Can I hold both BOEU and SMST in my portfolio?

BOEU and SMST have a correlation of -0.34, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, BOEU or SMST?

SMST has higher volatility (46.13%) compared to BOEU (21.63%). In terms of maximum drawdown, BOEU dropped -46.03% vs SMST's -99.25%.

Which ETF is better, BOEU or SMST?

On 1-year performance, SMST leads with 236.89% vs -2.84% for BOEU. On fees, BOEU is cheaper at 0.97% per year. On volatility, BOEU has been the lower-risk option at 21.63%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, BOEU or SMST?

Over the 1-year period, SMST has performed better with a 236.89% return vs -2.84%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, BOEU or SMST?

BOEU is cheaper with a 0.97% expense ratio, compared with 1.29% for SMST.

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

BOEU has the higher dividend yield at 2.23%, compared with 0.00% for SMST.

What is the main difference between BOEU and SMST?

BOEU is categorized as Leveraged Equities, while SMST is Inverse Equities. They also come from different issuers: Direxion and Defiance. Their fees differ too: 0.97% for BOEU and 1.29% for SMST.

Which has better risk-adjusted returns?

SMST currently has the higher Sharpe Ratio (1.63 vs -0.04), 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.