BRRR vs. SMST

Last updated Jun 26, 2026

BRRR (Valkyrie Bitcoin ETF) and SMST (Defiance Daily Target 2X Short MSTR ETF) are both exchange-traded funds - BRRR is a Cryptocurrency fund tracking the CME CF Bitcoin Reference Rate - New York Variant, while SMST is a Inverse Equities fund actively managed by Defiance. BRRR is passively managed, while SMST is actively managed. Over the past year, BRRR returned -45.23% vs 236.89% for SMST. At a correlation of -0.79, they often move in opposite directions. BRRR charges 0.25%/yr vs 1.29%/yr for SMST.

Performance

BRRR vs. SMST - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Valkyrie Bitcoin ETF (BRRR) 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, BRRR achieves a -32.47% return, which is significantly lower than SMST's -5.14% return.

BRRR

• 1D: -1.01%
• 1M: -21.96%
• YTD: -32.47%
• 6M: -32.17%
• 1Y: -45.23%
• 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)

BRRR vs. SMST - Yearly Performance Comparison

	2026 (YTD)	2025	2024
BRRR Valkyrie Bitcoin ETF	-32.47%	-6.50%	56.88%
SMST Defiance Daily Target 2X Short MSTR ETF	-5.14%	-44.36%	-91.71%

Correlation

The correlation between BRRR and SMST is -0.85, 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	-0.85
Correlation (All Time) Calculated using the full available price history since Aug 21, 2024	-0.79

The correlation between BRRR and SMST has been stable across timeframes, ranging from -0.85 to -0.79 - a consistent structural relationship.

Return for Risk

BRRR vs. SMST — Risk / Return Rank

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

BRRR

BRRR Risk / Return Rank: 2
BRRR Sharpe Ratio Rank: 1
BRRR Sortino Ratio Rank: 2
BRRR Omega Ratio Rank: 2
BRRR Calmar Ratio Rank: 2
BRRR Martin Ratio Rank: 2

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.

BRRR vs. SMST - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Valkyrie Bitcoin ETF (BRRR) 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.

	BRRR	SMST	Difference
Sharpe ratio: Return per unit of total volatility	-1.03	1.63	-2.66
Sortino ratio: Return per unit of downside risk	-1.54	2.35	-3.89
Omega ratio: Gain probability vs. loss probability	0.83	1.30	-0.47
Calmar ratio: Return relative to maximum drawdown	-0.86	2.79	-3.65
Martin ratio: Return relative to average drawdown	-1.46	5.52	-6.98

BRRR vs. SMST - Sharpe Ratio Comparison

The current BRRR Sharpe Ratio is -1.03, which is lower than the SMST Sharpe Ratio of 1.63. The chart below compares the historical Sharpe Ratios of BRRR 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

BRRR vs. SMST - Drawdown Comparison

The maximum BRRR drawdown since its inception was -52.91%, smaller than the maximum SMST drawdown of -99.25%. Use the drawdown chart below to compare losses from any high point for BRRR and SMST.

Drawdown Indicators

	BRRR	SMST	Difference
Max Drawdown Largest peak-to-trough decline	-52.91%	-99.25%	+46.34%
Max Drawdown (1Y) Largest decline over 1 year	-52.91%	-85.39%	+32.48%
Current Drawdown Current decline from peak	-52.91%	-96.27%	+43.36%
Average Drawdown Average peak-to-trough decline	-16.99%	-90.74%	+73.75%
Ulcer Index Depth and duration of drawdowns from previous peaks	30.90%	43.15%	-12.25%

Volatility

BRRR vs. SMST - Volatility Comparison

The current volatility for Valkyrie Bitcoin ETF (BRRR) is 13.40%, while Defiance Daily Target 2X Short MSTR ETF (SMST) has a volatility of 46.13%. This indicates that BRRR 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

	BRRR	SMST	Difference
Volatility (1M) Calculated over the trailing 1-month period	13.40%	46.13%	-32.73%
Volatility (6M) Calculated over the trailing 6-month period	34.58%	130.40%	-95.82%
Volatility (1Y) Calculated over the trailing 1-year period	44.30%	146.32%	-102.02%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	49.97%	167.25%	-117.28%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	49.97%	167.25%	-117.28%

BRRR vs. SMST - Expense Ratio Comparison

BRRR has a 0.25% expense ratio, which is lower than SMST's 1.29% expense ratio.

Dividends

BRRR vs. SMST - Dividend Comparison

Neither BRRR nor SMST has paid dividends to shareholders.

Tickers have no history of dividend payments

Frequently Asked Questions

Can I hold both BRRR and SMST in my portfolio?

BRRR and SMST have a correlation of -0.85, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, BRRR or SMST?

SMST has higher volatility (46.13%) compared to BRRR (13.40%). In terms of maximum drawdown, BRRR dropped -52.91% vs SMST's -99.25%.

Which ETF is better, BRRR or SMST?

On 1-year performance, SMST leads with 236.89% vs -45.23% for BRRR. On fees, BRRR is cheaper at 0.25% per year. On volatility, BRRR has been the lower-risk option at 13.40%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, BRRR or SMST?

Over the 1-year period, SMST has performed better with a 236.89% return vs -45.23%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, BRRR or SMST?

BRRR is cheaper with a 0.25% expense ratio, compared with 1.29% for SMST.

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

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

What is the main difference between BRRR and SMST?

BRRR is categorized as Cryptocurrency, while SMST is Inverse Equities. They also come from different issuers: Valkyrie Digital Assets and Defiance. Their fees differ too: 0.25% for BRRR and 1.29% for SMST.

Which has better risk-adjusted returns?

SMST currently has the higher Sharpe Ratio (1.63 vs -1.03), 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.