^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 20.93%/yr vs 25.26%/yr for MSFT. Their 0.67 correlation means they have sometimes moved together and sometimes differently.
Performance
^NDXT vs. MSFT - Performance Comparison
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Returns By Period
In the year-to-date period, ^NDXT achieves a 37.11% return, which is significantly higher than MSFT's 1.24% return. Over the past 10 years, ^NDXT has underperformed MSFT with an annualized return of 20.93%, while MSFT has yielded a comparatively higher 25.26% annualized return.
^NDXT
- 1D
- -1.39%
- 1M
- -1.63%
- 6M
- 40.38%
- YTD
- 37.11%
- 1Y
- 50.04%
- 3Y*
- 28.27%
- 5Y*
- 13.92%
- 10Y*
- 20.93%
- ALL TIME*
- 14.94%
MSFT
- 1D
- -1.09%
- 1M
- 26.04%
- 6M
- 18.21%
- YTD
- 1.24%
- 1Y
- -6.90%
- 3Y*
- 15.04%
- 5Y*
- 11.90%
- 10Y*
- 25.26%
- ALL TIME*
- 25.30%
Liquidity Comparison
| Position | Avg. Volume Value (2W) | Avg. Volume Value (1M) | Avg. Volume Value (3M) |
|---|---|---|---|
| $0.00 | $0.00 | $0.00 | |
| $21.56B | $16.11B | $16.89B |
^NDXT vs. MSFT - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
^NDXT NASDAQ 100 Technology Sector Index | 37.11% | 22.46% | 7.13% | 66.70% | -39.93% | 26.98% | 38.17% | 47.28% | -5.49% | 36.68% |
MSFT Microsoft Corporation | 1.24% | 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 0.30, which is low. Their historical price movements had little consistent relationship.
| Correlation | |
|---|---|
Correlation (1Y) Focuses on recent behavior, but can change the most. | 0.30 |
Correlation (3Y) Balances recent behavior with more history. | 0.53 |
Correlation (5Y) Shows whether the relationship held over a longer period. | 0.67 |
Correlation (10Y) Provides a long-term view across more market conditions. | 0.70 |
Correlation (All Time) Calculated using the full available price history since Feb 22, 2006 | 0.67 |
Over the past year, the correlation between ^NDXT and MSFT has dropped to 0.30 - well below their long-term average of 0.67, 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 | +1.95 | ||
| Sortino ratioReturn per unit of downside risk | +2.41 | ||
| Omega ratioGain probability vs. loss probability | 1.29 | 0.99 | +0.30 |
| Calmar ratioReturn relative to maximum drawdown | 3.13 | -0.20 | +3.33 |
| Martin ratioReturn relative to average drawdown | 8.68 | -0.36 | +9.04 |
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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 | -5.99% | -9.50% | +3.51% |
Average DrawdownAverage peak-to-trough decline | -9.85% | -21.80% | +11.95% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 5.78% | 19.33% | -13.55% |
Volatility
^NDXT vs. MSFT - Volatility Comparison
The current volatility for NASDAQ 100 Technology Sector Index (^NDXT) is 10.34%, while Microsoft Corporation (MSFT) has a volatility of 16.44%. This indicates that ^NDXT experiences smaller price fluctuations and is considered to be less risky 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 | 10.34% | 16.44% | -6.10% |
Volatility (6M)Calculated over the trailing 6-month period | 24.34% | 26.64% | -2.30% |
Volatility (1Y)Calculated over the trailing 1-year period | 28.98% | 31.98% | -3.00% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 30.61% | 28.10% | +2.51% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 28.30% | 27.66% | +0.64% |
Frequently Asked Questions
^NDXT and MSFT have a correlation of 0.30, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
MSFT has higher volatility (16.44%) compared to ^NDXT (10.34%). In terms of maximum drawdown, ^NDXT dropped -59.34% vs MSFT's -69.38%.
^NDXT currently has the higher Sharpe Ratio (1.74 vs -0.22), 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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