MSFD vs. LCOW

Last updated Aug 2, 2026

MSFD (Direxion Daily MSFT Bear 1X Shares) and LCOW (Pacer S&P 500 Quality FCF Aristocrats ETF) are both exchange-traded funds - MSFD is a Inverse Equities fund tracking the Microsoft Corporation (-100%), while LCOW is a Quality Factor fund tracking the S&P 500 Quality FCF Aristocrats Index. Both are passively managed. Over the past year, MSFD returned 7.40% vs 19.31% for LCOW. Their -0.48 correlation means they have often moved in opposite directions in the past. MSFD charges 1.06%/yr vs 0.49%/yr for LCOW.

Performance

MSFD vs. LCOW - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Direxion Daily MSFT Bear 1X Shares (MSFD) and Pacer S&P 500 Quality FCF Aristocrats ETF (LCOW). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, MSFD achieves a -1.78% return, which is significantly lower than LCOW's 8.56% return.

MSFD

• 1D: -2.88%
• 1M: -18.05%
• 6M: -11.78%
• YTD: -1.78%
• 1Y: 7.40%
• 3Y*: -10.70%
• 5Y*: —
• 10Y*: —
• ALL TIME*: -15.36%

LCOW

• 1D: 0.52%
• 1M: 1.05%
• 6M: 8.03%
• YTD: 8.56%
• 1Y: 19.31%
• 3Y*: —
• 5Y*: —
• 10Y*: —
• ALL TIME*: 24.36%

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

Liquidity Comparison

Position	Avg. Volume Value (2W)	Avg. Volume Value (1M)	Avg. Volume Value (3M)
LCOW Pacer S&P 500 Quality FCF Aristocrats ETF	$104.13K	$83.33K	$122.50K
MSFD Direxion Daily MSFT Bear 1X Shares	$21.45M	$15.41M	$22.03M

MSFD vs. LCOW - Yearly Performance Comparison

	2026 (YTD)	2025
MSFD Direxion Daily MSFT Bear 1X Shares	-1.78%	-8.94%
LCOW Pacer S&P 500 Quality FCF Aristocrats ETF	8.56%	20.51%

Correlation

The correlation between MSFD and LCOW is -0.48, meaning they have often moved in opposite directions in the past. This relationship can weaken or reverse as market conditions change.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	-0.48
Correlation (All Time) Calculated using the full available price history since May 7, 2025	-0.48

Return for Risk

MSFD vs. LCOW — Risk / Return Rank

Compare historical risk-adjusted metric ranks over the past 12 months.

MSFD

MSFD Risk / Return Rank: 18
MSFD Sharpe Ratio Rank: 17
MSFD Sortino Ratio Rank: 18
MSFD Omega Ratio Rank: 20
MSFD Calmar Ratio Rank: 17
MSFD Martin Ratio Rank: 19

LCOW

LCOW Risk / Return Rank: 58
LCOW Sharpe Ratio Rank: 62
LCOW Sortino Ratio Rank: 62
LCOW Omega Ratio Rank: 57
LCOW Calmar Ratio Rank: 48
LCOW Martin Ratio Rank: 59

The rank (0–100) uses a weighted average of the Sharpe, Sortino, Omega, Calmar, and Martin percentile ranks for the trailing 12 months. Higher means stronger historical risk-adjusted performance within the peer group.

MSFD vs. LCOW - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Direxion Daily MSFT Bear 1X Shares (MSFD) and Pacer S&P 500 Quality FCF Aristocrats ETF (LCOW). 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.

	MSFD	LCOW	Difference
Sharpe ratio: Return per unit of total volatility	0.30	1.45	-1.15
Sortino ratio: Return per unit of downside risk	0.60	2.07	-1.46
Omega ratio: Gain probability vs. loss probability	1.09	1.25	-0.16
Calmar ratio: Return relative to maximum drawdown	0.36	1.75	-1.39
Martin ratio: Return relative to average drawdown	1.20	7.12	-5.92

MSFD vs. LCOW - Sharpe Ratio Comparison

The current MSFD Sharpe Ratio is 0.30, which is lower than the LCOW Sharpe Ratio of 1.45. The chart below compares the historical Sharpe Ratios of MSFD and LCOW, 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

MSFD vs. LCOW - Drawdown Comparison

The maximum MSFD drawdown since its inception was -59.90%, which is greater than LCOW's maximum drawdown of -10.34%. Use the drawdown chart below to compare losses from any high point for MSFD and LCOW.

Drawdown Indicators

	MSFD	LCOW	Difference
Max Drawdown Largest peak-to-trough decline	-59.90%	-10.34%	-49.56%
Max Drawdown (1Y) Largest decline over 1 year	-26.54%	-10.34%	-16.20%
Max Drawdown (3Y) Largest decline over 3 years	-40.50%	—	—
Current Drawdown Current decline from peak	-55.70%	-0.83%	-54.87%
Average Drawdown Average peak-to-trough decline	-41.72%	-1.38%	-40.34%
Ulcer Index Depth and duration of drawdowns from previous peaks	7.87%	2.54%	+5.33%

Volatility

MSFD vs. LCOW - Volatility Comparison

Direxion Daily MSFT Bear 1X Shares (MSFD) has a higher volatility of 18.10% compared to Pacer S&P 500 Quality FCF Aristocrats ETF (LCOW) at 2.89%. This indicates that MSFD's price experiences larger fluctuations and is considered to be riskier than LCOW based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	MSFD	LCOW	Difference
Volatility (1M) Calculated over the trailing 1-month period	18.10%	2.89%	+15.21%
Volatility (6M) Calculated over the trailing 6-month period	27.83%	9.71%	+18.12%
Volatility (1Y) Calculated over the trailing 1-year period	32.03%	12.50%	+19.53%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	27.55%	12.38%	+15.17%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	27.55%	12.38%	+15.17%

MSFD vs. LCOW - Expense Ratio Comparison

MSFD has a 1.06% expense ratio, which is higher than LCOW's 0.49% expense ratio.

Dividends

MSFD vs. LCOW - Dividend Comparison

MSFD's dividend yield for the trailing twelve months is around 4.02%, more than LCOW's 0.62% yield.

Position	TTM	2025	2024	2023	2022
LCOW Pacer S&P 500 Quality FCF Aristocrats ETF	0.62%	0.43%	0.00%	0.00%	0.00%
MSFD Direxion Daily MSFT Bear 1X Shares	4.02%	3.33%	4.46%	4.43%	0.74%

Frequently Asked Questions

Can I hold both MSFD and LCOW in my portfolio?

MSFD and LCOW have a correlation of -0.48, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, MSFD or LCOW?

MSFD has higher volatility (18.10%) compared to LCOW (2.89%). In terms of maximum drawdown, MSFD dropped -59.90% vs LCOW's -10.34%.

Which ETF is better, MSFD or LCOW?

On 1-year performance, LCOW leads with 19.31% vs 7.40% for MSFD. On fees, LCOW is cheaper at 0.49% per year. On volatility, LCOW has been the lower-risk option at 2.89%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, MSFD or LCOW?

Over the 1-year period, LCOW has performed better with a 19.31% return vs 7.40%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, MSFD or LCOW?

LCOW is cheaper with a 0.49% expense ratio, compared with 1.06% for MSFD.

Which ETF pays a higher dividend yield, MSFD or LCOW?

MSFD has the higher dividend yield at 4.02%, compared with 0.62% for LCOW.

What is the main difference between MSFD and LCOW?

MSFD is categorized as Inverse Equities, while LCOW is Quality Factor. MSFD tracks Microsoft Corporation (-100%), while LCOW tracks S&P 500 Quality FCF Aristocrats Index. They also come from different issuers: Direxion and Pacer. Their fees differ too: 1.06% for MSFD and 0.49% for LCOW.

Which has better risk-adjusted returns?

LCOW currently has the higher Sharpe Ratio (1.45 vs 0.30), 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.