BPAY vs. SMST

Last updated Jun 26, 2026

BPAY (BlackRock Future Financial and Technology ETF) and SMST (Defiance Daily Target 2X Short MSTR ETF) are both exchange-traded funds - BPAY is a Financials Equities fund actively managed by BlackRock, while SMST is a Inverse Equities fund actively managed by Defiance. Both are actively managed. Over the past year, BPAY returned -17.22% vs 236.89% for SMST. At a correlation of -0.50, they often move in opposite directions. BPAY charges 0.70%/yr vs 1.29%/yr for SMST.

Performance

BPAY vs. SMST - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in BlackRock Future Financial and Technology ETF (BPAY) 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, BPAY achieves a -9.13% return, which is significantly lower than SMST's -5.14% return.

BPAY

• 1D: -0.22%
• 1M: 1.05%
• YTD: -9.13%
• 6M: -11.58%
• 1Y: -17.22%
• 3Y*: 9.60%
• 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)

BPAY vs. SMST - Yearly Performance Comparison

	2026 (YTD)	2025	2024
BPAY BlackRock Future Financial and Technology ETF	-9.13%	8.54%	6.89%
SMST Defiance Daily Target 2X Short MSTR ETF	-5.14%	-44.36%	-91.71%

Correlation

The correlation between BPAY and SMST is -0.54, 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	-0.54
Correlation (All Time) Calculated using the full available price history since Aug 21, 2024	-0.50

The correlation between BPAY and SMST has been stable across timeframes, ranging from -0.54 to -0.50 - a consistent structural relationship.

Return for Risk

BPAY vs. SMST — Risk / Return Rank

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

BPAY

BPAY Risk / Return Rank: 5
BPAY Sharpe Ratio Rank: 4
BPAY Sortino Ratio Rank: 4
BPAY Omega Ratio Rank: 4
BPAY Calmar Ratio Rank: 5
BPAY Martin Ratio Rank: 5

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.

BPAY vs. SMST - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for BlackRock Future Financial and Technology ETF (BPAY) 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.

	BPAY	SMST	Difference
Sharpe ratio: Return per unit of total volatility	-0.67	1.63	-2.30
Sortino ratio: Return per unit of downside risk	-0.80	2.35	-3.15
Omega ratio: Gain probability vs. loss probability	0.91	1.30	-0.39
Calmar ratio: Return relative to maximum drawdown	-0.51	2.79	-3.31
Martin ratio: Return relative to average drawdown	-0.96	5.52	-6.47

BPAY vs. SMST - Sharpe Ratio Comparison

The current BPAY Sharpe Ratio is -0.67, which is lower than the SMST Sharpe Ratio of 1.63. The chart below compares the historical Sharpe Ratios of BPAY 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

BPAY vs. SMST - Drawdown Comparison

The maximum BPAY drawdown since its inception was -33.62%, smaller than the maximum SMST drawdown of -99.25%. Use the drawdown chart below to compare losses from any high point for BPAY and SMST.

Drawdown Indicators

	BPAY	SMST	Difference
Max Drawdown Largest peak-to-trough decline	-33.62%	-99.25%	+65.63%
Max Drawdown (1Y) Largest decline over 1 year	-33.62%	-85.39%	+51.77%
Max Drawdown (3Y) Largest decline over 3 years	-33.62%	—	—
Current Drawdown Current decline from peak	-23.23%	-96.27%	+73.04%
Average Drawdown Average peak-to-trough decline	-10.75%	-90.74%	+79.99%
Ulcer Index Depth and duration of drawdowns from previous peaks	18.01%	43.15%	-25.14%

Volatility

BPAY vs. SMST - Volatility Comparison

The current volatility for BlackRock Future Financial and Technology ETF (BPAY) is 9.69%, while Defiance Daily Target 2X Short MSTR ETF (SMST) has a volatility of 46.13%. This indicates that BPAY 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

	BPAY	SMST	Difference
Volatility (1M) Calculated over the trailing 1-month period	9.69%	46.13%	-36.44%
Volatility (6M) Calculated over the trailing 6-month period	19.73%	130.40%	-110.67%
Volatility (1Y) Calculated over the trailing 1-year period	25.85%	146.32%	-120.47%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	24.47%	167.25%	-142.78%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	24.47%	167.25%	-142.78%

BPAY vs. SMST - Expense Ratio Comparison

BPAY has a 0.70% expense ratio, which is lower than SMST's 1.29% expense ratio.

Dividends

BPAY vs. SMST - Dividend Comparison

BPAY's dividend yield for the trailing twelve months is around 7.46%, while SMST has not paid dividends to shareholders.

Position	TTM	2025	2024	2023	2022
BPAY BlackRock Future Financial and Technology ETF	7.46%	6.49%	0.48%	1.18%	0.18%
SMST Defiance Daily Target 2X Short MSTR ETF	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both BPAY and SMST in my portfolio?

BPAY and SMST have a correlation of -0.54, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, BPAY or SMST?

SMST has higher volatility (46.13%) compared to BPAY (9.69%). In terms of maximum drawdown, BPAY dropped -33.62% vs SMST's -99.25%.

Which ETF is better, BPAY or SMST?

On 1-year performance, SMST leads with 236.89% vs -17.22% for BPAY. On fees, BPAY is cheaper at 0.70% per year. On volatility, BPAY has been the lower-risk option at 9.69%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, BPAY or SMST?

Over the 1-year period, SMST has performed better with a 236.89% return vs -17.22%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, BPAY or SMST?

BPAY is cheaper with a 0.70% expense ratio, compared with 1.29% for SMST.

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

BPAY has the higher dividend yield at 7.46%, compared with 0.00% for SMST.

What is the main difference between BPAY and SMST?

BPAY is categorized as Financials Equities, while SMST is Inverse Equities. They also come from different issuers: BlackRock and Defiance. Their fees differ too: 0.70% for BPAY and 1.29% for SMST.

Which has better risk-adjusted returns?

SMST currently has the higher Sharpe Ratio (1.63 vs -0.67), 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.