MSFD vs. MSFT

Last updated Jun 23, 2026

MSFD (Direxion Daily MSFT Bear 1X Shares) is Inverse Equities fund tracking the Microsoft Corporation (-100%), while MSFT (Microsoft Corporation) is a stock. Over the past 3 years, MSFD returned -2.53%/yr vs 3.92%/yr for MSFT. At a correlation of -0.99, they often move in opposite directions.

Performance

MSFD vs. MSFT - Performance Comparison

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

Returns By Period

In the year-to-date period, MSFD achieves a 28.14% return, which is significantly higher than MSFT's -23.71% return.

MSFD

• 1D: 3.18%
• 1M: 13.07%
• YTD: 28.14%
• 6M: 28.55%
• 1Y: 28.15%
• 3Y*: -2.53%
• 5Y*: —
• 10Y*: —

MSFT

• 1D: -3.18%
• 1M: -12.24%
• YTD: -23.71%
• 6M: -23.91%
• 1Y: -22.44%
• 3Y*: 3.92%
• 5Y*: 7.61%
• 10Y*: 23.62%

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

MSFD vs. MSFT - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022
MSFD Direxion Daily MSFT Bear 1X Shares	28.14%	-13.36%	-7.86%	-35.90%	3.88%
MSFT Microsoft Corporation	-23.71%	15.58%	12.93%	58.19%	-5.04%

Correlation

The correlation between MSFD and MSFT is -1.00, 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	-1.00
Correlation (3Y) Calculated over the trailing 3-year period	-1.00
Correlation (All Time) Calculated using the full available price history since Sep 7, 2022	-0.99

The correlation between MSFD and MSFT has been stable across timeframes, ranging from -1.00 to -0.99 - a consistent structural relationship.

Return for Risk

MSFD vs. MSFT — Risk / Return Rank

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

MSFD

MSFD Risk / Return Rank: 30
MSFD Sharpe Ratio Rank: 31
MSFD Sortino Ratio Rank: 33
MSFD Omega Ratio Rank: 33
MSFD Calmar Ratio Rank: 26
MSFD Martin Ratio Rank: 28

MSFT

MSFT Risk / Return Rank: 11
MSFT Sharpe Ratio Rank: 8
MSFT Sortino Ratio Rank: 10
MSFT Omega Ratio Rank: 10
MSFT Calmar Ratio Rank: 17
MSFT Martin Ratio Rank: 10

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. MSFT - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Direxion Daily MSFT Bear 1X Shares (MSFD) 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.

	MSFD	MSFT	Difference
Sharpe ratio: Return per unit of total volatility	1.08	-0.87	+1.95
Sortino ratio: Return per unit of downside risk	1.73	-1.10	+2.83
Omega ratio: Gain probability vs. loss probability	1.22	0.86	+0.36
Calmar ratio: Return relative to maximum drawdown	1.22	-0.66	+1.88
Martin ratio: Return relative to average drawdown	3.85	-1.32	+5.17

MSFD vs. MSFT - Sharpe Ratio Comparison

The current MSFD Sharpe Ratio is 1.08, which is higher than the MSFT Sharpe Ratio of -0.87. The chart below compares the historical Sharpe Ratios of MSFD and MSFT, 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. MSFT - Drawdown Comparison

The maximum MSFD drawdown since its inception was -59.90%, smaller than the maximum MSFT drawdown of -69.38%. Use the drawdown chart below to compare losses from any high point for MSFD and MSFT.

Drawdown Indicators

	MSFD	MSFT	Difference
Max Drawdown Largest peak-to-trough decline	-59.90%	-69.38%	+9.48%
Max Drawdown (1Y) Largest decline over 1 year	-23.25%	-33.91%	+10.66%
Max Drawdown (3Y) Largest decline over 3 years	-40.50%	-33.91%	-6.59%
Max Drawdown (5Y) Largest decline over 5 years	—	-37.15%	—
Max Drawdown (10Y) Largest decline over 10 years	—	-37.15%	—
Current Drawdown Current decline from peak	-42.20%	-31.80%	-10.40%
Average Drawdown Average peak-to-trough decline	-41.61%	-21.79%	-19.82%
Ulcer Index Depth and duration of drawdowns from previous peaks	7.81%	16.97%	-9.16%

Volatility

MSFD vs. MSFT - Volatility Comparison

Direxion Daily MSFT Bear 1X Shares (MSFD) and Microsoft Corporation (MSFT) have volatilities of 11.13% and 11.08%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	MSFD	MSFT	Difference
Volatility (1M) Calculated over the trailing 1-month period	11.13%	11.08%	+0.05%
Volatility (6M) Calculated over the trailing 6-month period	22.64%	22.93%	-0.29%
Volatility (1Y) Calculated over the trailing 1-year period	26.18%	26.01%	+0.17%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	26.23%	26.78%	-0.55%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	26.23%	27.11%	-0.88%

Dividends

MSFD vs. MSFT - Dividend Comparison

MSFD's dividend yield for the trailing twelve months is around 2.44%, more than MSFT's 0.97% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
MSFD Direxion Daily MSFT Bear 1X Shares	2.44%	3.33%	4.46%	4.43%	0.74%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
MSFT Microsoft Corporation	0.97%	0.70%	0.73%	0.74%	1.06%	0.68%	0.94%	1.20%	1.69%	1.86%	2.37%	2.33%

Frequently Asked Questions

Can I hold both MSFD and MSFT in my portfolio?

MSFD and MSFT have a correlation of -1.00, 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 MSFT?

MSFD has higher volatility (11.13%) compared to MSFT (11.08%). In terms of maximum drawdown, MSFD dropped -59.90% vs MSFT's -69.38%.

Which has better risk-adjusted returns?

MSFD currently has the higher Sharpe Ratio (1.08 vs -0.87), 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.