KBAB vs. SMST

Last updated Aug 2, 2026

KBAB (KraneShares 2x Long BABA Daily ETF) and SMST (Defiance Daily Target 2X Short MSTR ETF) are both exchange-traded funds - KBAB is a Leveraged Equities fund actively managed by KraneShares, while SMST is a Inverse Equities fund actively managed by Defiance. Both are actively managed. Over the past year, KBAB returned -16.96% vs 128.37% for SMST. Their -0.31 correlation means they have often moved in opposite directions in the past. KBAB charges 1.00%/yr vs 1.29%/yr for SMST.

Performance

KBAB vs. SMST - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in KraneShares 2x Long BABA Daily ETF (KBAB) 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, KBAB achieves a -39.99% return, which is significantly lower than SMST's -35.77% return.

KBAB

• 1D: 10.58%
• 1M: 57.00%
• 6M: -53.74%
• YTD: -39.99%
• 1Y: -16.96%
• 3Y*: —
• 5Y*: —
• 10Y*: —
• ALL TIME*: -34.14%

SMST

• 1D: 8.37%
• 1M: 5.47%
• 6M: -29.35%
• YTD: -35.77%
• 1Y: 128.37%
• 3Y*: —
• 5Y*: —
• 10Y*: —
• ALL TIME*: -83.68%

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

Liquidity Comparison

Position	Avg. Volume Value (2W)	Avg. Volume Value (1M)	Avg. Volume Value (3M)
KBAB KraneShares 2x Long BABA Daily ETF	$69.43K	$174.57K	$194.23K
SMST Defiance Daily Target 2X Short MSTR ETF	$15.35M	$15.12M	$17.58M

KBAB vs. SMST - Yearly Performance Comparison

	2026 (YTD)	2025
KBAB KraneShares 2x Long BABA Daily ETF	-39.99%	-6.56%
SMST Defiance Daily Target 2X Short MSTR ETF	-35.77%	-21.75%

Correlation

The correlation between KBAB and SMST is -0.34, meaning they have often moved in opposite directions in the past. This relationship can weaken or reverse as market conditions change.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	-0.34
Correlation (All Time) Calculated using the full available price history since Mar 12, 2025	-0.31

Return for Risk

KBAB vs. SMST — Risk / Return Rank

Compare historical risk-adjusted metric ranks over the past 12 months.

KBAB

KBAB Risk / Return Rank: 9
KBAB Sharpe Ratio Rank: 7
KBAB Sortino Ratio Rank: 13
KBAB Omega Ratio Rank: 12
KBAB Calmar Ratio Rank: 7
KBAB Martin Ratio Rank: 8

SMST

SMST Risk / Return Rank: 52
SMST Sharpe Ratio Rank: 45
SMST Sortino Ratio Rank: 62
SMST Omega Ratio Rank: 61
SMST Calmar Ratio Rank: 56
SMST Martin Ratio Rank: 36

The rank (0–100) uses a weighted average of the Sharpe, Sortino, Omega, Calmar, and Martin percentile ranks for the trailing 12 months. Higher means stronger historical risk-adjusted performance within the peer group.

KBAB vs. SMST - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for KraneShares 2x Long BABA Daily ETF (KBAB) 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.

	KBAB	SMST	Difference
Sharpe ratio: Return per unit of total volatility	-0.24	1.13	-1.37
Sortino ratio: Return per unit of downside risk	0.27	2.09	-1.82
Omega ratio: Gain probability vs. loss probability	1.03	1.27	-0.24
Calmar ratio: Return relative to maximum drawdown	-0.28	2.00	-2.28
Martin ratio: Return relative to average drawdown	-0.47	3.68	-4.15

KBAB vs. SMST - Sharpe Ratio Comparison

The current KBAB Sharpe Ratio is -0.24, which is lower than the SMST Sharpe Ratio of 1.13. The chart below compares the historical Sharpe Ratios of KBAB 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

KBAB vs. SMST - Drawdown Comparison

The maximum KBAB drawdown since its inception was -78.98%, smaller than the maximum SMST drawdown of -99.25%. Use the drawdown chart below to compare losses from any high point for KBAB and SMST.

Drawdown Indicators

	KBAB	SMST	Difference
Max Drawdown Largest peak-to-trough decline	-78.98%	-99.25%	+20.27%
Max Drawdown (1Y) Largest decline over 1 year	-78.98%	-85.39%	+6.41%
Current Drawdown Current decline from peak	-66.20%	-97.48%	+31.28%
Average Drawdown Average peak-to-trough decline	-41.21%	-91.08%	+49.87%
Ulcer Index Depth and duration of drawdowns from previous peaks	46.15%	46.35%	-0.20%

Volatility

KBAB vs. SMST - Volatility Comparison

The current volatility for KraneShares 2x Long BABA Daily ETF (KBAB) is 27.65%, while Defiance Daily Target 2X Short MSTR ETF (SMST) has a volatility of 38.14%. This indicates that KBAB 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

	KBAB	SMST	Difference
Volatility (1M) Calculated over the trailing 1-month period	27.65%	38.14%	-10.49%
Volatility (6M) Calculated over the trailing 6-month period	57.86%	135.29%	-77.43%
Volatility (1Y) Calculated over the trailing 1-year period	90.35%	151.04%	-60.69%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	90.76%	166.75%	-75.99%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	90.76%	166.75%	-75.99%

KBAB vs. SMST - Expense Ratio Comparison

KBAB has a 1.00% expense ratio, which is lower than SMST's 1.29% expense ratio.

Dividends

KBAB vs. SMST - Dividend Comparison

KBAB's dividend yield for the trailing twelve months is around 99.78%, while SMST has not paid dividends to shareholders.

Position	TTM	2025
KBAB KraneShares 2x Long BABA Daily ETF	99.78%	59.88%
SMST Defiance Daily Target 2X Short MSTR ETF	0.00%	0.00%

Frequently Asked Questions

Can I hold both KBAB and SMST in my portfolio?

KBAB and SMST have a correlation of -0.34, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, KBAB or SMST?

SMST has higher volatility (38.14%) compared to KBAB (27.65%). In terms of maximum drawdown, KBAB dropped -78.98% vs SMST's -99.25%.

Which ETF is better, KBAB or SMST?

On 1-year performance, SMST leads with 128.37% vs -16.96% for KBAB. On fees, KBAB is cheaper at 1.00% per year. On volatility, KBAB has been the lower-risk option at 27.65%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, KBAB or SMST?

Over the 1-year period, SMST has performed better with a 128.37% return vs -16.96%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, KBAB or SMST?

KBAB is cheaper with a 1.00% expense ratio, compared with 1.29% for SMST.

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

KBAB has the higher dividend yield at 99.78%, compared with 0.00% for SMST.

What is the main difference between KBAB and SMST?

KBAB is categorized as Leveraged Equities, while SMST is Inverse Equities. They also come from different issuers: KraneShares and Defiance. Their fees differ too: 1.00% for KBAB and 1.29% for SMST.

Which has better risk-adjusted returns?

SMST currently has the higher Sharpe Ratio (1.13 vs -0.24), 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.