IBIT vs. SMST
IBIT (iShares Bitcoin Trust ETF) and SMST (Defiance Daily Target 2X Short MSTR ETF) are both exchange-traded funds - IBIT 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. IBIT is passively managed, while SMST is actively managed. Over the past year, IBIT returned -46.35% vs 223.39% for SMST. At a correlation of -0.79, they often move in opposite directions. IBIT charges 0.25%/yr vs 1.29%/yr for SMST.
Performance
IBIT vs. SMST - Performance Comparison
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Returns By Period
In the year-to-date period, IBIT achieves a -26.32% return, which is significantly higher than SMST's -36.68% return.
IBIT
- 1D
- 3.86%
- 1M
- 1.50%
- 6M
- -31.72%
- YTD
- -26.32%
- 1Y
- -46.35%
- 3Y*
- —
- 5Y*
- —
- 10Y*
- —
SMST
- 1D
- -12.10%
- 1M
- 26.91%
- 6M
- -13.52%
- YTD
- -36.68%
- 1Y
- 223.39%
- 3Y*
- —
- 5Y*
- —
- 10Y*
- —
IBIT vs. SMST - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | |
|---|---|---|---|
IBIT iShares Bitcoin Trust ETF | -26.32% | -6.41% | 56.40% |
SMST Defiance Daily Target 2X Short MSTR ETF | -36.68% | -44.36% | -91.71% |
Correlation
The correlation between IBIT 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 | -0.79 |
The correlation between IBIT and SMST has been stable across timeframes, ranging from -0.84 to -0.79 - a consistent structural relationship.
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Return for Risk
IBIT vs. SMST — Risk / Return Rank
IBIT
SMST
IBIT vs. SMST - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares Bitcoin Trust ETF (IBIT) 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.
| IBIT | SMST | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -2.55 | ||
| Sortino ratioReturn per unit of downside risk | -3.86 | ||
| Omega ratioGain probability vs. loss probability | 0.83 | 1.30 | -0.47 |
| Calmar ratioReturn relative to maximum drawdown | -0.87 | 2.63 | -3.51 |
| Martin ratioReturn relative to average drawdown | -1.41 | 5.07 | -6.48 |
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Drawdowns
IBIT vs. SMST - Drawdown Comparison
The maximum IBIT drawdown since its inception was -53.30%, smaller than the maximum SMST drawdown of -99.25%. Use the drawdown chart below to compare losses from any high point for IBIT and SMST.
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Drawdown Indicators
| IBIT | SMST | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -53.30% | -99.25% | +45.95% |
Max Drawdown (1Y)Largest decline over 1 year | -53.30% | -85.39% | +32.09% |
Current DrawdownCurrent decline from peak | -48.69% | -97.51% | +48.82% |
Average DrawdownAverage peak-to-trough decline | -17.61% | -90.91% | +73.30% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 32.86% | 44.25% | -11.39% |
Volatility
IBIT vs. SMST - Volatility Comparison
The current volatility for iShares Bitcoin Trust ETF (IBIT) is 11.82%, while Defiance Daily Target 2X Short MSTR ETF (SMST) has a volatility of 57.45%. This indicates that IBIT 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
| IBIT | SMST | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 11.82% | 57.45% | -45.63% |
Volatility (6M)Calculated over the trailing 6-month period | 35.03% | 136.03% | -101.00% |
Volatility (1Y)Calculated over the trailing 1-year period | 44.48% | 149.51% | -105.03% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 49.99% | 167.79% | -117.80% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 49.99% | 167.79% | -117.80% |
IBIT vs. SMST - Expense Ratio Comparison
IBIT has a 0.25% expense ratio, which is lower than SMST's 1.29% expense ratio.
Dividends
IBIT vs. SMST - Dividend Comparison
Neither IBIT nor SMST has paid dividends to shareholders.
Frequently Asked Questions
IBIT 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.
SMST has higher volatility (57.45%) compared to IBIT (11.82%). In terms of maximum drawdown, IBIT dropped -53.30% vs SMST's -99.25%.
On 1-year performance, SMST leads with 223.39% vs -46.35% for IBIT. On fees, IBIT is cheaper at 0.25% per year. On volatility, IBIT has been the lower-risk option at 11.82%. 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 223.39% return vs -46.35%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
IBIT is cheaper with a 0.25% expense ratio, compared with 1.29% for SMST.
IBIT and SMST have nearly identical dividend yields, around 0.00%.
IBIT is categorized as Cryptocurrency, while SMST is Inverse Equities. They also come from different issuers: iShares and Defiance. Their fees differ too: 0.25% for IBIT and 1.29% for SMST.
SMST currently has the higher Sharpe Ratio (1.51 vs -1.05), 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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