DFII vs. SMST

Last updated Jul 14, 2026

DFII (FT Vest Bitcoin Strategy & Target Income ETF) and SMST (Defiance Daily Target 2X Short MSTR ETF) are both exchange-traded funds - DFII is a Cryptocurrency fund actively managed by First Trust, while SMST is a Inverse Equities fund actively managed by Defiance. Both are actively managed. Over the past year, DFII returned -45.77% vs 240.03% for SMST. At a correlation of -0.82, they often move in opposite directions. DFII charges 0.85%/yr vs 1.29%/yr for SMST.

Performance

DFII vs. SMST - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in FT Vest Bitcoin Strategy & Target Income ETF (DFII) and Defiance Daily Target 2X Short MSTR ETF (SMST). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

The year-to-date returns for both investments are quite close, with DFII having a -28.51% return and SMST slightly higher at -27.96%.

DFII

• 1D: -2.55%
• 1M: -2.03%
• 6M: -31.22%
• YTD: -28.51%
• 1Y: -45.77%
• 3Y*: —
• 5Y*: —
• 10Y*: —

SMST

• 1D: 5.26%
• 1M: 44.38%
• 6M: -15.07%
• YTD: -27.96%
• 1Y: 240.03%
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

DFII vs. SMST - Yearly Performance Comparison

	2026 (YTD)	2025
DFII FT Vest Bitcoin Strategy & Target Income ETF	-28.51%	6.01%
SMST Defiance Daily Target 2X Short MSTR ETF	-27.96%	35.67%

Correlation

The correlation between DFII 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 Apr 3, 2025	-0.82

The correlation between DFII and SMST has been stable across timeframes, ranging from -0.84 to -0.82 - a consistent structural relationship.

Return for Risk

DFII vs. SMST — Risk / Return Rank

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

DFII

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

SMST

SMST Risk / Return Rank: 60
SMST Sharpe Ratio Rank: 62
SMST Sortino Ratio Rank: 63
SMST Omega Ratio Rank: 63
SMST Calmar Ratio Rank: 71
SMST Martin Ratio Rank: 43

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.

DFII vs. SMST - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for FT Vest Bitcoin Strategy & Target Income ETF (DFII) 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.

	DFII	SMST	Difference
Sharpe ratio: Return per unit of total volatility	-1.09	1.62	-2.71
Sortino ratio: Return per unit of downside risk	-1.65	2.33	-3.98
Omega ratio: Gain probability vs. loss probability	0.81	1.30	-0.49
Calmar ratio: Return relative to maximum drawdown	-0.90	2.83	-3.73
Martin ratio: Return relative to average drawdown	-1.47	5.47	-6.94

DFII vs. SMST - Sharpe Ratio Comparison

The current DFII Sharpe Ratio is -1.09, which is lower than the SMST Sharpe Ratio of 1.62. The chart below compares the historical Sharpe Ratios of DFII 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

DFII vs. SMST - Drawdown Comparison

The maximum DFII drawdown since its inception was -51.04%, smaller than the maximum SMST drawdown of -99.25%. Use the drawdown chart below to compare losses from any high point for DFII and SMST.

Drawdown Indicators

	DFII	SMST	Difference
Max Drawdown Largest peak-to-trough decline	-51.04%	-99.25%	+48.21%
Max Drawdown (1Y) Largest decline over 1 year	-51.04%	-85.39%	+34.35%
Current Drawdown Current decline from peak	-48.62%	-97.17%	+48.55%
Average Drawdown Average peak-to-trough decline	-21.35%	-90.89%	+69.54%
Ulcer Index Depth and duration of drawdowns from previous peaks	31.20%	44.09%	-12.89%

Volatility

DFII vs. SMST - Volatility Comparison

The current volatility for FT Vest Bitcoin Strategy & Target Income ETF (DFII) is 10.27%, while Defiance Daily Target 2X Short MSTR ETF (SMST) has a volatility of 56.59%. This indicates that DFII 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

	DFII	SMST	Difference
Volatility (1M) Calculated over the trailing 1-month period	10.27%	56.59%	-46.32%
Volatility (6M) Calculated over the trailing 6-month period	33.53%	135.88%	-102.35%
Volatility (1Y) Calculated over the trailing 1-year period	42.12%	149.23%	-107.11%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	40.88%	167.74%	-126.86%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	40.88%	167.74%	-126.86%

DFII vs. SMST - Expense Ratio Comparison

DFII has a 0.85% expense ratio, which is lower than SMST's 1.29% expense ratio.

Dividends

DFII vs. SMST - Dividend Comparison

DFII's dividend yield for the trailing twelve months is around 28.10%, while SMST has not paid dividends to shareholders.

Position	TTM	2025
DFII FT Vest Bitcoin Strategy & Target Income ETF	28.10%	15.51%
SMST Defiance Daily Target 2X Short MSTR ETF	0.00%	0.00%

Frequently Asked Questions

Can I hold both DFII and SMST in my portfolio?

DFII 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, DFII or SMST?

SMST has higher volatility (56.59%) compared to DFII (10.27%). In terms of maximum drawdown, DFII dropped -51.04% vs SMST's -99.25%.

Which ETF is better, DFII or SMST?

On 1-year performance, SMST leads with 240.03% vs -45.77% for DFII. On fees, DFII is cheaper at 0.85% per year. On volatility, DFII has been the lower-risk option at 10.27%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, DFII or SMST?

Over the 1-year period, SMST has performed better with a 240.03% return vs -45.77%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, DFII or SMST?

DFII is cheaper with a 0.85% expense ratio, compared with 1.29% for SMST.

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

DFII has the higher dividend yield at 28.10%, compared with 0.00% for SMST.

What is the main difference between DFII and SMST?

DFII is categorized as Cryptocurrency, while SMST is Inverse Equities. They also come from different issuers: First Trust and Defiance. Their fees differ too: 0.85% for DFII and 1.29% for SMST.

Which has better risk-adjusted returns?

SMST currently has the higher Sharpe Ratio (1.62 vs -1.09), 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.