MSFD vs. MSDD

Last updated Jun 24, 2026

MSFD (Direxion Daily MSFT Bear 1X Shares) and MSDD (GraniteShares 2x Short MSTR Daily ETF) are both Inverse Equities funds. MSFD is passively managed, while MSDD is actively managed. Over the past year, MSFD returned 26.45% vs 69.58% for MSDD. At a 0.26 correlation, their price movements are largely independent. MSFD charges 1.06%/yr vs 1.50%/yr for MSDD.

Performance

MSFD vs. MSDD - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Direxion Daily MSFT Bear 1X Shares (MSFD) and GraniteShares 2x Short MSTR Daily ETF (MSDD). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, MSFD achieves a 24.19% return, which is significantly higher than MSDD's -48.72% return.

MSFD

• 1D: -3.08%
• 1M: 9.58%
• YTD: 24.19%
• 6M: 25.23%
• 1Y: 26.45%
• 3Y*: -3.55%
• 5Y*: —
• 10Y*: —

MSDD

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

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

MSFD vs. MSDD - Yearly Performance Comparison

	2026 (YTD)	2025
MSFD Direxion Daily MSFT Bear 1X Shares	24.19%	-0.83%
MSDD GraniteShares 2x Short MSTR Daily ETF	-48.72%	274.52%

Correlation

The correlation between MSFD and MSDD is 0.27, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.27
Correlation (All Time) Calculated using the full available price history since Jun 10, 2025	0.26

Return for Risk

MSFD vs. MSDD — Risk / Return Rank

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

MSFD

MSFD Risk / Return Rank: 29
MSFD Sharpe Ratio Rank: 30
MSFD Sortino Ratio Rank: 32
MSFD Omega Ratio Rank: 32
MSFD Calmar Ratio Rank: 25
MSFD Martin Ratio Rank: 28

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

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.

MSFD vs. MSDD - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Direxion Daily MSFT Bear 1X Shares (MSFD) and GraniteShares 2x Short MSTR Daily ETF (MSDD). 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	MSDD	Difference
Sharpe ratio: Return per unit of total volatility	1.01	0.50	+0.52
Sortino ratio: Return per unit of downside risk	1.63	1.61	+0.02
Omega ratio: Gain probability vs. loss probability	1.20	1.21	-0.01
Calmar ratio: Return relative to maximum drawdown	1.14	0.82	+0.32
Martin ratio: Return relative to average drawdown	3.69	1.63	+2.06

MSFD vs. MSDD - Sharpe Ratio Comparison

The current MSFD Sharpe Ratio is 1.01, which is higher than the MSDD Sharpe Ratio of 0.50. The chart below compares the historical Sharpe Ratios of MSFD and MSDD, 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. MSDD - Drawdown Comparison

The maximum MSFD drawdown since its inception was -59.90%, smaller than the maximum MSDD drawdown of -84.91%. Use the drawdown chart below to compare losses from any high point for MSFD and MSDD.

Drawdown Indicators

	MSFD	MSDD	Difference
Max Drawdown Largest peak-to-trough decline	-59.90%	-84.91%	+25.01%
Max Drawdown (1Y) Largest decline over 1 year	-23.25%	-84.91%	+61.66%
Max Drawdown (3Y) Largest decline over 3 years	-40.50%	—	—
Current Drawdown Current decline from peak	-43.99%	-68.63%	+24.64%
Average Drawdown Average peak-to-trough decline	-41.61%	-31.26%	-10.35%
Ulcer Index Depth and duration of drawdowns from previous peaks	7.35%	43.14%	-35.79%

Volatility

MSFD vs. MSDD - Volatility Comparison

The current volatility for Direxion Daily MSFT Bear 1X Shares (MSFD) is 11.74%, while GraniteShares 2x Short MSTR Daily ETF (MSDD) has a volatility of 32.28%. This indicates that MSFD experiences smaller price fluctuations and is considered to be less risky than MSDD based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	MSFD	MSDD	Difference
Volatility (1M) Calculated over the trailing 1-month period	11.74%	32.28%	-20.54%
Volatility (6M) Calculated over the trailing 6-month period	22.81%	124.65%	-101.84%
Volatility (1Y) Calculated over the trailing 1-year period	26.33%	140.94%	-114.61%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	26.27%	138.85%	-112.58%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	26.27%	138.85%	-112.58%

MSFD vs. MSDD - Expense Ratio Comparison

MSFD has a 1.06% expense ratio, which is lower than MSDD's 1.50% expense ratio.

Dividends

MSFD vs. MSDD - Dividend Comparison

MSFD's dividend yield for the trailing twelve months is around 2.52%, while MSDD has not paid dividends to shareholders.

Position	TTM	2025	2024	2023	2022
MSDD GraniteShares 2x Short MSTR Daily ETF	0.00%	0.00%	0.00%	0.00%	0.00%
MSFD Direxion Daily MSFT Bear 1X Shares	2.52%	3.33%	4.46%	4.43%	0.74%

Frequently Asked Questions

Can I hold both MSFD and MSDD in my portfolio?

MSFD and MSDD have a correlation of 0.27, 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 MSDD?

MSDD has higher volatility (32.28%) compared to MSFD (11.74%). In terms of maximum drawdown, MSFD dropped -59.90% vs MSDD's -84.91%.

Which ETF is better, MSFD or MSDD?

On 1-year performance, MSDD leads with 69.58% vs 26.45% for MSFD. On fees, MSFD is cheaper at 1.06% per year. On volatility, MSFD has been the lower-risk option at 11.74%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, MSFD or MSDD?

Over the 1-year period, MSDD has performed better with a 69.58% return vs 26.45%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, MSFD or MSDD?

MSFD is cheaper with a 1.06% expense ratio, compared with 1.50% for MSDD.

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

MSFD has the higher dividend yield at 2.52%, compared with 0.00% for MSDD.

What is the main difference between MSFD and MSDD?

They also come from different issuers: Direxion and GraniteShares. Their fees differ too: 1.06% for MSFD and 1.50% for MSDD.

Which has better risk-adjusted returns?

MSFD currently has the higher Sharpe Ratio (1.01 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.