SMST vs VYM

Quick Verdict

VYM has a lower expense ratio. SMST delivered stronger 1-year returns. VYM offers more diversification with 616 holdings.

Lower Fees: VYMHigher Returns: SMSTMore Diversified: VYM

Side-by-Side Comparison

MetricSMSTVYMWinner
Expense Ratio1.31%0.04%
AUM$28M$81.6B
Dividend Yield0.00%2.24%
Holdings8616
YTD Return-31.89%+16.42%
1Y Return+141.43%+24.22%
3Y Return (annualized)-+19.03%
5Y Return (annualized)-+12.21%
Volatility (annualized)180.5%14.6%
Max Drawdown-99.3%-58.8%
Fund FamilyDefiance ETFs, LLCVanguard (US)
CategoryAlternativeEquity
InceptionAug 20, 2024Nov 10, 2006

SMST vs VYM Performance

Defiance Daily Target 2X Short MSTR ETF (SMST) is a ETF from Defiance ETFs, LLC and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year SMST returned +141.43% while VYM returned +24.22%. Year to date, SMST is down 31.89% versus a gain of 16.42% for VYM.

Risk: Volatility and Drawdowns

SMST has been the more volatile fund, with annualized monthly volatility of 180.5% compared with 14.6% for VYM. 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 -58.8% for VYM. 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 -0.12. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

SMST charges 1.31% per year while VYM charges 0.04%. On a $10,000 position that is $131 vs $4 annually, a gap of $127 per year that compounds over a long holding period. On income, SMST currently yields 0.00% against 2.24% for VYM.

Holdings Overlap

0.0%overlap

SMST and VYM share 0 holdings out of 605 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 VYM?

SMST has an expense ratio of 1.31% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $127 per year of difference.

Which performed better, SMST or VYM?

Over the past year SMST returned +141.43% vs +24.22% for VYM, so SMST leads on 1-year performance. Over the longest common window we track (2 years), SMST annualized -82.40% vs +7.10% for VYM. Past performance does not guarantee future results.

Which is riskier, SMST or VYM?

SMST has been the more volatile fund at 180.5% annualized versus 14.6% for VYM. Worst drawdown: SMST -99.3% vs VYM -58.8%.

Should I hold both SMST and VYM?

SMST and VYM have a monthly-return correlation of -0.12, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between SMST and VYM?

SMST and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 605 unique securities.

Which pays a higher dividend, SMST or VYM?

SMST yields 0.00% while VYM yields 2.24%, so VYM currently pays the higher dividend yield.

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