HYG vs. SMST
HYG (iShares iBoxx $ High Yield Corporate Bond ETF) and SMST (Defiance Daily Target 2X Short MSTR ETF) are both exchange-traded funds - HYG is a High Yield Bonds fund tracking the Markit iBoxx USD Liquid High Yield Index, while SMST is a Inverse Equities fund actively managed by Defiance. HYG is passively managed, while SMST is actively managed. Over the past year, HYG returned 5.35% vs 240.03% for SMST. At a correlation of -0.43, they often move in opposite directions. HYG charges 0.49%/yr vs 1.29%/yr for SMST.
Performance
HYG vs. SMST - Performance Comparison
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Returns By Period
In the year-to-date period, HYG achieves a 1.59% return, which is significantly higher than SMST's -27.96% return.
HYG
- 1D
- -0.24%
- 1M
- -0.06%
- 6M
- 1.07%
- YTD
- 1.59%
- 1Y
- 5.35%
- 3Y*
- 8.13%
- 5Y*
- 3.62%
- 10Y*
- 4.65%
SMST
- 1D
- 5.26%
- 1M
- 44.38%
- 6M
- -15.07%
- YTD
- -27.96%
- 1Y
- 240.03%
- 3Y*
- —
- 5Y*
- —
- 10Y*
- —
HYG vs. SMST - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | |
|---|---|---|---|
HYG iShares iBoxx $ High Yield Corporate Bond ETF | 1.59% | 8.59% | 2.14% |
SMST Defiance Daily Target 2X Short MSTR ETF | -27.96% | -44.36% | -91.71% |
Correlation
The correlation between HYG and SMST is -0.44, 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 | -0.44 |
Correlation (All Time) Calculated using the full available price history since Aug 21, 2024 | -0.43 |
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Return for Risk
HYG vs. SMST — Risk / Return Rank
HYG
SMST
HYG vs. SMST - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares iBoxx $ High Yield Corporate Bond ETF (HYG) 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.
| HYG | SMST | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.22 | ||
| Sortino ratioReturn per unit of downside risk | -0.22 | ||
| Omega ratioGain probability vs. loss probability | 1.27 | 1.30 | -0.04 |
| Calmar ratioReturn relative to maximum drawdown | 2.30 | 2.83 | -0.53 |
| Martin ratioReturn relative to average drawdown | 10.14 | 5.47 | +4.67 |
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Drawdowns
HYG vs. SMST - Drawdown Comparison
The maximum HYG drawdown since its inception was -34.25%, smaller than the maximum SMST drawdown of -99.25%. Use the drawdown chart below to compare losses from any high point for HYG and SMST.
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Drawdown Indicators
| HYG | SMST | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -34.25% | -99.25% | +65.00% |
Max Drawdown (1Y)Largest decline over 1 year | -2.34% | -85.39% | +83.05% |
Max Drawdown (3Y)Largest decline over 3 years | -4.56% | — | — |
Max Drawdown (5Y)Largest decline over 5 years | -15.79% | — | — |
Max Drawdown (10Y)Largest decline over 10 years | -22.03% | — | — |
Current DrawdownCurrent decline from peak | -0.44% | -97.17% | +96.73% |
Average DrawdownAverage peak-to-trough decline | -3.23% | -90.89% | +87.66% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.53% | 44.09% | -43.56% |
Volatility
HYG vs. SMST - Volatility Comparison
The current volatility for iShares iBoxx $ High Yield Corporate Bond ETF (HYG) is 0.95%, while Defiance Daily Target 2X Short MSTR ETF (SMST) has a volatility of 56.59%. This indicates that HYG 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.
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Volatility by Period
| HYG | SMST | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 0.95% | 56.59% | -55.64% |
Volatility (6M)Calculated over the trailing 6-month period | 3.13% | 135.88% | -132.75% |
Volatility (1Y)Calculated over the trailing 1-year period | 3.84% | 149.23% | -145.39% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 7.54% | 167.74% | -160.20% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 8.22% | 167.74% | -159.52% |
HYG vs. SMST - Expense Ratio Comparison
HYG has a 0.49% expense ratio, which is lower than SMST's 1.29% expense ratio.
Dividends
HYG vs. SMST - Dividend Comparison
HYG's dividend yield for the trailing twelve months is around 5.92%, while SMST has not paid dividends to shareholders.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
HYG iShares iBoxx $ High Yield Corporate Bond ETF | 5.92% | 5.71% | 6.01% | 5.74% | 5.30% | 4.02% | 4.88% | 4.99% | 5.54% | 5.12% | 5.27% | 5.90% |
SMST Defiance Daily Target 2X Short MSTR ETF | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
Frequently Asked Questions
HYG and SMST have a correlation of -0.44, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
SMST has higher volatility (56.59%) compared to HYG (0.95%). In terms of maximum drawdown, HYG dropped -34.25% vs SMST's -99.25%.
On 1-year performance, SMST leads with 240.03% vs 5.35% for HYG. On fees, HYG is cheaper at 0.49% per year. On volatility, HYG has been the lower-risk option at 0.95%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 1-year period, SMST has performed better with a 240.03% return vs 5.35%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
HYG is cheaper with a 0.49% expense ratio, compared with 1.29% for SMST.
HYG has the higher dividend yield at 5.92%, compared with 0.00% for SMST.
HYG is categorized as High Yield Bonds, while SMST is Inverse Equities. They also come from different issuers: iShares and Defiance. Their fees differ too: 0.49% for HYG and 1.29% for SMST.
SMST currently has the higher Sharpe Ratio (1.62 vs 1.40), 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.
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