MSDD vs. ESGU

Last updated Jun 24, 2026

MSDD (GraniteShares 2x Short MSTR Daily ETF) and ESGU (iShares ESG Aware MSCI USA ETF) are both exchange-traded funds - MSDD is a Inverse Equities fund actively managed by GraniteShares, while ESGU is a Large Cap Blend Equities fund tracking the MSCI USA Extended ESG Focus Index. MSDD is actively managed, while ESGU is passively managed. Over the past year, MSDD returned 69.58% vs 23.73% for ESGU. At a correlation of -0.46, they often move in opposite directions. MSDD charges 1.50%/yr vs 0.15%/yr for ESGU.

Performance

MSDD vs. ESGU - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in GraniteShares 2x Short MSTR Daily ETF (MSDD) and iShares ESG Aware MSCI USA ETF (ESGU). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, MSDD achieves a -48.72% return, which is significantly lower than ESGU's 8.38% return.

MSDD

• 1D: 0.00%
• 1M: 44.94%
• YTD: -48.72%
• 6M: -45.00%
• 1Y: 69.58%
• 3Y*: —
• 5Y*: —
• 10Y*: —

ESGU

• 1D: -1.34%
• 1M: -1.03%
• YTD: 8.38%
• 6M: 7.35%
• 1Y: 23.73%
• 3Y*: 20.47%
• 5Y*: 11.91%
• 10Y*: —

*Multi-year figures are annualized to reflect compound growth (CAGR)

MSDD vs. ESGU - Yearly Performance Comparison

	2026 (YTD)	2025
MSDD GraniteShares 2x Short MSTR Daily ETF	-48.72%	274.52%
ESGU iShares ESG Aware MSCI USA ETF	8.38%	14.44%

Correlation

The correlation between MSDD and ESGU is -0.47, meaning they tend to move in opposite directions. This is especially valuable for risk management - when one declines, the other has historically tended to hold steady or rise.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	-0.47
Correlation (All Time) Calculated using the full available price history since Jun 10, 2025	-0.46

MSDD vs. ESGU - Sectors Allocation Comparison

Sectors	MSDD	ESGU
Technology	200.1%	39.4%
Basic Materials	-	1.9%
Communication Services	-	9.9%
Consumer Cyclical	-	9.3%
Consumer Defensive	-	4.2%
Energy	-	3.4%
Financial Services	-	11.1%
Healthcare	-	8.9%
Industrials	-	8.0%
Real Estate	-	2.1%
Utilities	-	1.8%

Return for Risk

MSDD vs. ESGU — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

MSDD

MSDD Risk / Return Rank: 24
MSDD Sharpe Ratio Rank: 17
MSDD Sortino Ratio Rank: 32
MSDD Omega Ratio Rank: 33
MSDD Calmar Ratio Rank: 20
MSDD Martin Ratio Rank: 16

ESGU

ESGU Risk / Return Rank: 58
ESGU Sharpe Ratio Rank: 58
ESGU Sortino Ratio Rank: 55
ESGU Omega Ratio Rank: 56
ESGU Calmar Ratio Rank: 55
ESGU Martin Ratio Rank: 65

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

MSDD vs. ESGU - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for GraniteShares 2x Short MSTR Daily ETF (MSDD) and iShares ESG Aware MSCI USA ETF (ESGU). 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.

	MSDD	ESGU	Difference
Sharpe ratio: Return per unit of total volatility	0.50	1.86	-1.37
Sortino ratio: Return per unit of downside risk	1.61	2.52	-0.91
Omega ratio: Gain probability vs. loss probability	1.21	1.33	-0.13
Calmar ratio: Return relative to maximum drawdown	0.82	2.58	-1.75
Martin ratio: Return relative to average drawdown	1.63	11.27	-9.64

MSDD vs. ESGU - Sharpe Ratio Comparison

The current MSDD Sharpe Ratio is 0.50, which is lower than the ESGU Sharpe Ratio of 1.86. The chart below compares the historical Sharpe Ratios of MSDD and ESGU, 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

MSDD vs. ESGU - Drawdown Comparison

The maximum MSDD drawdown since its inception was -84.91%, which is greater than ESGU's maximum drawdown of -33.87%. Use the drawdown chart below to compare losses from any high point for MSDD and ESGU.

Drawdown Indicators

	MSDD	ESGU	Difference
Max Drawdown Largest peak-to-trough decline	-84.91%	-33.87%	-51.04%
Max Drawdown (1Y) Largest decline over 1 year	-84.91%	-9.26%	-75.65%
Max Drawdown (3Y) Largest decline over 3 years	—	-19.32%	—
Max Drawdown (5Y) Largest decline over 5 years	—	-26.15%	—
Current Drawdown Current decline from peak	-68.63%	-3.19%	-65.44%
Average Drawdown Average peak-to-trough decline	-31.26%	-4.88%	-26.38%
Ulcer Index Depth and duration of drawdowns from previous peaks	43.14%	2.11%	+41.03%

Volatility

MSDD vs. ESGU - Volatility Comparison

GraniteShares 2x Short MSTR Daily ETF (MSDD) has a higher volatility of 32.28% compared to iShares ESG Aware MSCI USA ETF (ESGU) at 4.97%. This indicates that MSDD's price experiences larger fluctuations and is considered to be riskier than ESGU based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	MSDD	ESGU	Difference
Volatility (1M) Calculated over the trailing 1-month period	32.28%	4.97%	+27.31%
Volatility (6M) Calculated over the trailing 6-month period	124.65%	10.11%	+114.54%
Volatility (1Y) Calculated over the trailing 1-year period	140.94%	12.81%	+128.13%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	138.85%	17.42%	+121.43%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	138.85%	18.60%	+120.25%

MSDD vs. ESGU - Expense Ratio Comparison

MSDD has a 1.50% expense ratio, which is higher than ESGU's 0.15% expense ratio.

Dividends

MSDD vs. ESGU - Dividend Comparison

MSDD has not paid dividends to shareholders, while ESGU's dividend yield for the trailing twelve months is around 0.95%.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017
ESGU iShares ESG Aware MSCI USA ETF	0.95%	0.99%	1.18%	1.43%	1.58%	1.06%	1.27%	1.32%	1.73%	1.82%
MSDD GraniteShares 2x Short MSTR Daily ETF	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both MSDD and ESGU in my portfolio?

MSDD and ESGU have a correlation of -0.47, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, MSDD or ESGU?

MSDD has higher volatility (32.28%) compared to ESGU (4.97%). In terms of maximum drawdown, MSDD dropped -84.91% vs ESGU's -33.87%.

Which ETF is better, MSDD or ESGU?

On 1-year performance, MSDD leads with 69.58% vs 23.73% for ESGU. On fees, ESGU is cheaper at 0.15% per year. On volatility, ESGU has been the lower-risk option at 4.97%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, MSDD or ESGU?

Over the 1-year period, MSDD has performed better with a 69.58% return vs 23.73%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, MSDD or ESGU?

ESGU is cheaper with a 0.15% expense ratio, compared with 1.50% for MSDD.

Which ETF pays a higher dividend yield, MSDD or ESGU?

ESGU has the higher dividend yield at 0.95%, compared with 0.00% for MSDD.

What is the main difference between MSDD and ESGU?

MSDD is categorized as Inverse Equities, while ESGU is Large Cap Blend Equities. They also come from different issuers: GraniteShares and iShares. Their fees differ too: 1.50% for MSDD and 0.15% for ESGU.

Which has better risk-adjusted returns?

ESGU currently has the higher Sharpe Ratio (1.86 vs 0.50), 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.