DEFI vs. SMST

Last updated Jul 17, 2026

DEFI (Hashdex Bitcoin Futures ETF) and SMST (Defiance Daily Target 2X Short MSTR ETF) are both exchange-traded funds - DEFI is a Cryptocurrency fund tracking the HDEFI – Hashdex U.S. Bitcoin Futures Fund Benchmark Index, while SMST is a Inverse Equities fund actively managed by Defiance. DEFI is passively managed, while SMST is actively managed. Over the past year, DEFI returned -46.11% vs 257.89% for SMST. At a correlation of -0.77, they often move in opposite directions. DEFI charges 0.90%/yr vs 1.29%/yr for SMST.

Performance

DEFI vs. SMST - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Hashdex Bitcoin Futures ETF (DEFI) 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, DEFI achieves a -26.43% return, which is significantly higher than SMST's -31.71% return.

DEFI

• 1D: -1.12%
• 1M: -2.20%
• 6M: -32.40%
• YTD: -26.43%
• 1Y: -46.11%
• 3Y*: —
• 5Y*: —
• 10Y*: —

SMST

• 1D: 7.64%
• 1M: 37.45%
• 6M: -8.12%
• YTD: -31.71%
• 1Y: 257.89%
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

DEFI vs. SMST - Yearly Performance Comparison

	2026 (YTD)	2025	2024
DEFI Hashdex Bitcoin Futures ETF	-26.43%	-6.87%	56.28%
SMST Defiance Daily Target 2X Short MSTR ETF	-31.71%	-44.36%	-91.71%

Correlation

The correlation between DEFI and SMST is -0.84, 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	-0.84
Correlation (All Time) Calculated using the full available price history since Aug 21, 2024	-0.77

The correlation between DEFI and SMST has been stable across timeframes, ranging from -0.84 to -0.77 - a consistent structural relationship.

Return for Risk

DEFI vs. SMST — Risk / Return Rank

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

DEFI

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

SMST

SMST Risk / Return Rank: 63
SMST Sharpe Ratio Rank: 67
SMST Sortino Ratio Rank: 64
SMST Omega Ratio Rank: 64
SMST Calmar Ratio Rank: 75
SMST Martin Ratio Rank: 44

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.

DEFI vs. SMST - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Hashdex Bitcoin Futures ETF (DEFI) 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.

	DEFI	SMST	Difference
Sharpe ratio: Return per unit of total volatility	-1.04	1.74	-2.78
Sortino ratio: Return per unit of downside risk	-1.56	2.38	-3.94
Omega ratio: Gain probability vs. loss probability	0.83	1.31	-0.48
Calmar ratio: Return relative to maximum drawdown	-0.87	3.04	-3.91
Martin ratio: Return relative to average drawdown	-1.40	5.82	-7.21

DEFI vs. SMST - Sharpe Ratio Comparison

The current DEFI Sharpe Ratio is -1.04, which is lower than the SMST Sharpe Ratio of 1.74. The chart below compares the historical Sharpe Ratios of DEFI 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

DEFI vs. SMST - Drawdown Comparison

The maximum DEFI drawdown since its inception was -53.19%, smaller than the maximum SMST drawdown of -99.25%. Use the drawdown chart below to compare losses from any high point for DEFI and SMST.

Drawdown Indicators

	DEFI	SMST	Difference
Max Drawdown Largest peak-to-trough decline	-53.19%	-99.25%	+46.06%
Max Drawdown (1Y) Largest decline over 1 year	-53.19%	-85.39%	+32.20%
Current Drawdown Current decline from peak	-48.79%	-97.32%	+48.53%
Average Drawdown Average peak-to-trough decline	-18.13%	-90.93%	+72.80%
Ulcer Index Depth and duration of drawdowns from previous peaks	33.03%	44.56%	-11.53%

Volatility

DEFI vs. SMST - Volatility Comparison

The current volatility for Hashdex Bitcoin Futures ETF (DEFI) is 11.04%, while Defiance Daily Target 2X Short MSTR ETF (SMST) has a volatility of 55.38%. This indicates that DEFI 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

	DEFI	SMST	Difference
Volatility (1M) Calculated over the trailing 1-month period	11.04%	55.38%	-44.34%
Volatility (6M) Calculated over the trailing 6-month period	35.25%	135.32%	-100.07%
Volatility (1Y) Calculated over the trailing 1-year period	44.65%	149.40%	-104.75%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	48.61%	167.53%	-118.92%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	48.61%	167.53%	-118.92%

DEFI vs. SMST - Expense Ratio Comparison

DEFI has a 0.90% expense ratio, which is lower than SMST's 1.29% expense ratio.

Dividends

DEFI vs. SMST - Dividend Comparison

Neither DEFI nor SMST has paid dividends to shareholders.

Tickers have no history of dividend payments

Frequently Asked Questions

Can I hold both DEFI and SMST in my portfolio?

DEFI and SMST have a correlation of -0.84, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, DEFI or SMST?

SMST has higher volatility (55.38%) compared to DEFI (11.04%). In terms of maximum drawdown, DEFI dropped -53.19% vs SMST's -99.25%.

Which ETF is better, DEFI or SMST?

On 1-year performance, SMST leads with 257.89% vs -46.11% for DEFI. On fees, DEFI is cheaper at 0.90% per year. On volatility, DEFI has been the lower-risk option at 11.04%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, DEFI or SMST?

Over the 1-year period, SMST has performed better with a 257.89% return vs -46.11%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, DEFI or SMST?

DEFI is cheaper with a 0.90% expense ratio, compared with 1.29% for SMST.

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

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

What is the main difference between DEFI and SMST?

DEFI is categorized as Cryptocurrency, while SMST is Inverse Equities. They also come from different issuers: Hashdex and Defiance. Their fees differ too: 0.90% for DEFI and 1.29% for SMST.

Which has better risk-adjusted returns?

SMST currently has the higher Sharpe Ratio (1.74 vs -1.04), 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.