MSTQ vs. USOY

Last updated Aug 4, 2026

MSTQ (LHA Market State Tactical Q ETF) and USOY (Defiance Oil Enhanced Options Income ETF) are both exchange-traded funds - MSTQ is a Options Trading fund actively managed by Little Harbor Advisors, while USOY is a Derivative Income fund actively managed by Defiance. Both are actively managed. Over the past year, MSTQ returned 19.01% vs 35.36% for USOY. Their -0.07 correlation means they have often moved in opposite directions in the past. MSTQ charges 1.59%/yr vs 1.22%/yr for USOY.

Performance

MSTQ vs. USOY - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in LHA Market State Tactical Q ETF (MSTQ) and Defiance Oil Enhanced Options Income ETF (USOY). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, MSTQ achieves a 9.61% return, which is significantly lower than USOY's 44.25% return.

MSTQ

• 1D: 1.90%
• 1M: -1.94%
• 6M: 8.40%
• YTD: 9.61%
• 1Y: 19.01%
• 3Y*: 19.31%
• 5Y*: —
• 10Y*: —
• ALL TIME*: 13.98%

USOY

• 1D: -4.63%
• 1M: 12.58%
• 6M: 35.65%
• YTD: 44.25%
• 1Y: 35.36%
• 3Y*: —
• 5Y*: —
• 10Y*: —
• ALL TIME*: 16.63%

*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)
MSTQ LHA Market State Tactical Q ETF	$172.73K	$136.64K	$94.08K
USOY Defiance Oil Enhanced Options Income ETF	$3.04M	$3.28M	$3.41M

MSTQ vs. USOY - Yearly Performance Comparison

	2026 (YTD)	2025	2024
MSTQ LHA Market State Tactical Q ETF	9.61%	20.57%	13.21%
USOY Defiance Oil Enhanced Options Income ETF	44.25%	-7.93%	6.13%

Correlation

The correlation between MSTQ and USOY is -0.19, 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.	-0.19
Correlation (All Time) Calculated using the full available price history since May 10, 2024	-0.07

The correlation between MSTQ and USOY shifts across timeframes, from -0.19 (1 year) to -0.07 (all time), reflecting how their relationship changes across market environments.

Return for Risk

MSTQ vs. USOY — Risk / Return Rank

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

MSTQ

MSTQ Risk / Return Rank: 40
MSTQ Sharpe Ratio Rank: 41
MSTQ Sortino Ratio Rank: 39
MSTQ Omega Ratio Rank: 38
MSTQ Calmar Ratio Rank: 41
MSTQ Martin Ratio Rank: 39

USOY

USOY Risk / Return Rank: 39
USOY Sharpe Ratio Rank: 40
USOY Sortino Ratio Rank: 39
USOY Omega Ratio Rank: 42
USOY Calmar Ratio Rank: 39
USOY Martin Ratio Rank: 38

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.

MSTQ vs. USOY - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for LHA Market State Tactical Q ETF (MSTQ) and Defiance Oil Enhanced Options Income ETF (USOY). 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.

	MSTQ	USOY	Difference
Sharpe ratio: Return per unit of total volatility	1.09	1.01	+0.08
Sortino ratio: Return per unit of downside risk	1.55	1.47	+0.09
Omega ratio: Gain probability vs. loss probability	1.19	1.20	-0.01
Calmar ratio: Return relative to maximum drawdown	1.54	1.39	+0.15
Martin ratio: Return relative to average drawdown	4.17	4.10	+0.06

MSTQ vs. USOY - Sharpe Ratio Comparison

The current MSTQ Sharpe Ratio is 1.09, which is comparable to the USOY Sharpe Ratio of 1.01. The chart below compares the historical Sharpe Ratios of MSTQ and USOY, 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

MSTQ vs. USOY - Drawdown Comparison

The maximum MSTQ drawdown since its inception was -31.05%, which is greater than USOY's maximum drawdown of -25.51%. Use the drawdown chart below to compare losses from any high point for MSTQ and USOY.

Drawdown Indicators

	MSTQ	USOY	Difference
Max Drawdown Largest peak-to-trough decline	-31.05%	-25.51%	-5.54%
Max Drawdown (1Y) Largest decline over 1 year	-12.39%	-25.51%	+13.12%
Max Drawdown (3Y) Largest decline over 3 years	-15.22%	—	—
Current Drawdown Current decline from peak	-6.83%	-15.60%	+8.77%
Average Drawdown Average peak-to-trough decline	-8.48%	-7.18%	-1.30%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.57%	8.65%	-4.08%

Volatility

MSTQ vs. USOY - Volatility Comparison

The current volatility for LHA Market State Tactical Q ETF (MSTQ) is 7.35%, while Defiance Oil Enhanced Options Income ETF (USOY) has a volatility of 16.26%. This indicates that MSTQ experiences smaller price fluctuations and is considered to be less risky than USOY based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	MSTQ	USOY	Difference
Volatility (1M) Calculated over the trailing 1-month period	7.35%	16.26%	-8.91%
Volatility (6M) Calculated over the trailing 6-month period	14.31%	32.70%	-18.39%
Volatility (1Y) Calculated over the trailing 1-year period	17.60%	35.22%	-17.62%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	19.23%	28.35%	-9.12%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	19.23%	28.35%	-9.12%

MSTQ vs. USOY - Expense Ratio Comparison

MSTQ has a 1.59% expense ratio, which is higher than USOY's 1.22% expense ratio.

Dividends

MSTQ vs. USOY - Dividend Comparison

MSTQ's dividend yield for the trailing twelve months is around 12.74%, less than USOY's 59.33% yield.

Position	TTM	2025	2024	2023
MSTQ LHA Market State Tactical Q ETF	12.74%	13.97%	3.72%	0.77%
USOY Defiance Oil Enhanced Options Income ETF	59.33%	104.32%	48.60%	0.00%

Frequently Asked Questions

Can I hold both MSTQ and USOY in my portfolio?

MSTQ and USOY have a correlation of -0.19, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, MSTQ or USOY?

USOY has higher volatility (16.26%) compared to MSTQ (7.35%). In terms of maximum drawdown, MSTQ dropped -31.05% vs USOY's -25.51%.

Which ETF is better, MSTQ or USOY?

On 1-year performance, USOY leads with 35.36% vs 19.01% for MSTQ. On fees, USOY is cheaper at 1.22% per year. On volatility, MSTQ has been the lower-risk option at 7.35%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, MSTQ or USOY?

Over the 1-year period, USOY has performed better with a 35.36% return vs 19.01%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, MSTQ or USOY?

USOY is cheaper with a 1.22% expense ratio, compared with 1.59% for MSTQ.

Which ETF pays a higher dividend yield, MSTQ or USOY?

USOY has the higher dividend yield at 59.33%, compared with 12.74% for MSTQ.

What is the main difference between MSTQ and USOY?

MSTQ is categorized as Options Trading, while USOY is Derivative Income. They also come from different issuers: Little Harbor Advisors and Defiance. Their fees differ too: 1.59% for MSTQ and 1.22% for USOY.

Which has better risk-adjusted returns?

MSTQ currently has the higher Sharpe Ratio (1.09 vs 1.01), 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.