DEFR vs. SMST

Last updated Jul 15, 2026

DEFR (Aptus Deferred Income ETF) and SMST (Defiance Daily Target 2X Short MSTR ETF) are both exchange-traded funds - DEFR is a Intermediate Core-Plus Bond fund actively managed by Aptus, while SMST is a Inverse Equities fund actively managed by Defiance. Both are actively managed. Over the past year, DEFR returned 3.91% vs 223.39% for SMST. At a correlation of -0.26, they often move in opposite directions. DEFR charges 0.79%/yr vs 1.29%/yr for SMST.

Performance

DEFR vs. SMST - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Aptus Deferred Income ETF (DEFR) 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, DEFR achieves a -0.33% return, which is significantly higher than SMST's -36.68% return.

DEFR

• 1D: 0.11%
• 1M: 0.19%
• 6M: -0.65%
• YTD: -0.33%
• 1Y: 3.91%
• 3Y*: —
• 5Y*: —
• 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)

DEFR vs. SMST - Yearly Performance Comparison

	2026 (YTD)	2025
DEFR Aptus Deferred Income ETF	-0.33%	6.80%
SMST Defiance Daily Target 2X Short MSTR ETF	-36.68%	289.92%

Correlation

The correlation between DEFR and SMST is -0.26, 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	-0.26
Correlation (All Time) Calculated using the full available price history since May 14, 2025	-0.26

Return for Risk

DEFR vs. SMST — Risk / Return Rank

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

DEFR

DEFR Risk / Return Rank: 25
DEFR Sharpe Ratio Rank: 26
DEFR Sortino Ratio Rank: 24
DEFR Omega Ratio Rank: 24
DEFR Calmar Ratio Rank: 25
DEFR Martin Ratio Rank: 24

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.

DEFR vs. SMST - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Aptus Deferred Income ETF (DEFR) 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.

	DEFR	SMST	Difference
Sharpe ratio: Return per unit of total volatility	0.77	1.51	-0.73
Sortino ratio: Return per unit of downside risk	1.11	2.28	-1.17
Omega ratio: Gain probability vs. loss probability	1.14	1.30	-0.16
Calmar ratio: Return relative to maximum drawdown	1.01	2.63	-1.63
Martin ratio: Return relative to average drawdown	2.42	5.07	-2.66

DEFR vs. SMST - Sharpe Ratio Comparison

The current DEFR Sharpe Ratio is 0.77, which is lower than the SMST Sharpe Ratio of 1.51. The chart below compares the historical Sharpe Ratios of DEFR 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

DEFR vs. SMST - Drawdown Comparison

The maximum DEFR drawdown since its inception was -3.90%, smaller than the maximum SMST drawdown of -99.25%. Use the drawdown chart below to compare losses from any high point for DEFR and SMST.

Drawdown Indicators

	DEFR	SMST	Difference
Max Drawdown Largest peak-to-trough decline	-3.90%	-99.25%	+95.35%
Max Drawdown (1Y) Largest decline over 1 year	-3.90%	-85.39%	+81.49%
Current Drawdown Current decline from peak	-2.63%	-97.51%	+94.88%
Average Drawdown Average peak-to-trough decline	-1.08%	-90.91%	+89.83%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.63%	44.25%	-42.62%

Volatility

DEFR vs. SMST - Volatility Comparison

The current volatility for Aptus Deferred Income ETF (DEFR) is 1.23%, while Defiance Daily Target 2X Short MSTR ETF (SMST) has a volatility of 57.45%. This indicates that DEFR 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

	DEFR	SMST	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.23%	57.45%	-56.22%
Volatility (6M) Calculated over the trailing 6-month period	3.45%	136.03%	-132.58%
Volatility (1Y) Calculated over the trailing 1-year period	5.13%	149.51%	-144.38%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	5.26%	167.79%	-162.53%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	5.26%	167.79%	-162.53%

DEFR vs. SMST - Expense Ratio Comparison

DEFR has a 0.79% expense ratio, which is lower than SMST's 1.29% expense ratio.

Dividends

DEFR vs. SMST - Dividend Comparison

Neither DEFR nor SMST has paid dividends to shareholders.

Tickers have no history of dividend payments

Frequently Asked Questions

Can I hold both DEFR and SMST in my portfolio?

DEFR and SMST have a correlation of -0.26, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, DEFR or SMST?

SMST has higher volatility (57.45%) compared to DEFR (1.23%). In terms of maximum drawdown, DEFR dropped -3.90% vs SMST's -99.25%.

Which ETF is better, DEFR or SMST?

On 1-year performance, SMST leads with 223.39% vs 3.91% for DEFR. On fees, DEFR is cheaper at 0.79% per year. On volatility, DEFR has been the lower-risk option at 1.23%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, DEFR or SMST?

Over the 1-year period, SMST has performed better with a 223.39% return vs 3.91%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, DEFR or SMST?

DEFR is cheaper with a 0.79% expense ratio, compared with 1.29% for SMST.

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

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

What is the main difference between DEFR and SMST?

DEFR is categorized as Intermediate Core-Plus Bond, while SMST is Inverse Equities. They also come from different issuers: Aptus and Defiance. Their fees differ too: 0.79% for DEFR and 1.29% for SMST.

Which has better risk-adjusted returns?

SMST currently has the higher Sharpe Ratio (1.51 vs 0.77), 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.