SMST vs SPY
Defiance Daily Target 2X Short MSTR ETF vs State Street SPDR S&P 500 ETF Trust
Quick Verdict
SPY has a lower expense ratio. SMST delivered stronger 1-year returns. SPY offers more diversification with 505 holdings.
Side-by-Side Comparison
| Metric | SMST | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 1.31% | 0.09% | |
| AUM | $28M | $821.1B | |
| Dividend Yield | 0.00% | 1.01% | |
| Holdings | 8 | 505 | |
| YTD Return | -57.29% | +12.22% | |
| 1Y Return | +31.65% | +20.83% | |
| 3Y Return (annualized) | - | +21.70% | |
| 5Y Return (annualized) | - | +12.98% | |
| Volatility (annualized) | 182.4% | 15.3% | |
| Max Drawdown | -99.3% | -56.5% | |
| Fund Family | Defiance ETFs, LLC | State Street Investment Management | |
| Category | Alternative | Equity | |
| Inception | Aug 20, 2024 | Jan 22, 1993 |
SMST vs SPY Performance
Defiance Daily Target 2X Short MSTR ETF (SMST) is a ETF from Defiance ETFs, LLC and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year SMST returned +31.65% while SPY returned +20.83%. Year to date, SMST is down 57.29% versus a gain of 12.22% for SPY.
Risk: Volatility and Drawdowns
SMST has been the more volatile fund, with annualized monthly volatility of 182.4% compared with 15.3% for SPY. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.
The deepest peak-to-trough decline in our data was -99.3% for SMST and -56.5% for SPY. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.
The two funds' monthly returns correlate at -0.25. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
SMST charges 1.31% per year while SPY charges 0.09%. On a $10,000 position that is $131 vs $9 annually, a gap of $122 per year that compounds over a long holding period. On income, SMST currently yields 0.00% against 1.01% for SPY.
Holdings Overlap
SMST and SPY share 0 holdings out of 506 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, SMST or SPY?
SMST has an expense ratio of 1.31% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $122 per year of difference.
Which performed better, SMST or SPY?
Over the past year SMST returned +31.65% vs +20.83% for SPY, so SMST leads on 1-year performance. Over the longest common window we track (2 years), SMST annualized -85.87% vs +8.79% for SPY. Past performance does not guarantee future results.
Which is riskier, SMST or SPY?
SMST has been the more volatile fund at 182.4% annualized versus 15.3% for SPY. Worst drawdown: SMST -99.3% vs SPY -56.5%.
Should I hold both SMST and SPY?
SMST and SPY have a monthly-return correlation of -0.25, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SMST and SPY?
SMST and SPY share 0 common holdings with a 0.0% weight overlap. Combined, they hold 506 unique securities.
Which pays a higher dividend, SMST or SPY?
SMST yields 0.00% while SPY yields 1.01%, so SPY currently pays the higher dividend yield.
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