^NDXT vs. MSFT
^NDXT (NASDAQ 100 Technology Sector Index) is an index, while MSFT (Microsoft Corporation) is a stock. Over the past 10 years, ^NDXT returned 23.05%/yr vs 23.48%/yr for MSFT. A 0.68 correlation means they provide meaningful diversification when combined.
Performance
^NDXT vs. MSFT - Performance Comparison
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Returns By Period
In the year-to-date period, ^NDXT achieves a 40.30% return, which is significantly higher than MSFT's -26.72% return. Both investments have delivered pretty close results over the past 10 years, with ^NDXT having a 23.05% annualized return and MSFT not far ahead at 23.48%.
^NDXT
- 1D
- 1.70%
- 1M
- 2.79%
- YTD
- 40.30%
- 6M
- 37.42%
- 1Y
- 53.65%
- 3Y*
- 31.58%
- 5Y*
- 15.71%
- 10Y*
- 23.05%
MSFT
- 1D
- -3.46%
- 1M
- -15.19%
- YTD
- -26.72%
- 6M
- -27.38%
- 1Y
- -27.75%
- 3Y*
- 3.20%
- 5Y*
- 6.77%
- 10Y*
- 23.48%
^NDXT vs. MSFT - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
^NDXT NASDAQ 100 Technology Sector Index | 40.30% | 22.46% | 7.13% | 66.70% | -39.93% | 26.98% | 38.17% | 47.28% | -5.49% | 36.68% |
MSFT Microsoft Corporation | -26.72% | 15.58% | 12.93% | 58.19% | -28.02% | 52.48% | 42.53% | 57.56% | 20.80% | 40.73% |
Correlation
The correlation between ^NDXT and MSFT is 0.38, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.38 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.57 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.69 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.71 |
Correlation (All Time) Calculated using the full available price history since Feb 22, 2006 | 0.68 |
Over the past year, the correlation between ^NDXT and MSFT has dropped to 0.38 - well below their long-term average of 0.68, suggesting their price drivers have been diverging.
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Return for Risk
^NDXT vs. MSFT — Risk / Return Rank
^NDXT
MSFT
^NDXT vs. MSFT - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for NASDAQ 100 Technology Sector Index (^NDXT) and Microsoft Corporation (MSFT). 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.
| ^NDXT | MSFT | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +3.09 | ||
| Sortino ratioReturn per unit of downside risk | +4.01 | ||
| Omega ratioGain probability vs. loss probability | 1.34 | 0.82 | +0.52 |
| Calmar ratioReturn relative to maximum drawdown | 3.35 | -0.81 | +4.16 |
| Martin ratioReturn relative to average drawdown | 10.49 | -1.60 | +12.10 |
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Drawdowns
^NDXT vs. MSFT - Drawdown Comparison
The maximum ^NDXT drawdown since its inception was -59.34%, smaller than the maximum MSFT drawdown of -69.38%. Use the drawdown chart below to compare losses from any high point for ^NDXT and MSFT.
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Drawdown Indicators
| ^NDXT | MSFT | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -59.34% | -69.38% | +10.04% |
Max Drawdown (1Y)Largest decline over 1 year | -16.08% | -34.50% | +18.42% |
Max Drawdown (3Y)Largest decline over 3 years | -29.28% | -34.50% | +5.22% |
Max Drawdown (5Y)Largest decline over 5 years | -45.71% | -37.15% | -8.56% |
Max Drawdown (10Y)Largest decline over 10 years | -45.71% | -37.15% | -8.56% |
Current DrawdownCurrent decline from peak | -3.80% | -34.50% | +30.70% |
Average DrawdownAverage peak-to-trough decline | -9.86% | -21.79% | +11.93% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 5.13% | 17.34% | -12.21% |
Volatility
^NDXT vs. MSFT - Volatility Comparison
NASDAQ 100 Technology Sector Index (^NDXT) has a higher volatility of 14.32% compared to Microsoft Corporation (MSFT) at 11.82%. This indicates that ^NDXT's price experiences larger fluctuations and is considered to be riskier than MSFT based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| ^NDXT | MSFT | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 14.32% | 11.82% | +2.50% |
Volatility (6M)Calculated over the trailing 6-month period | 22.25% | 23.26% | -1.01% |
Volatility (1Y)Calculated over the trailing 1-year period | 26.51% | 26.24% | +0.27% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 30.17% | 26.85% | +3.32% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 28.11% | 27.11% | +1.00% |
Frequently Asked Questions
^NDXT and MSFT have a correlation of 0.38, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
^NDXT has higher volatility (14.32%) compared to MSFT (11.82%). In terms of maximum drawdown, ^NDXT dropped -59.34% vs MSFT's -69.38%.
^NDXT currently has the higher Sharpe Ratio (2.03 vs -1.06), 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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