MSFD vs. PSQ

Last updated Jul 14, 2026

MSFD (Direxion Daily MSFT Bear 1X Shares) and PSQ (ProShares Short QQQ) are both Inverse Equities funds - MSFD tracks the Microsoft Corporation (-100%) while PSQ tracks the NASDAQ-100 Index (-100%). Both are passively managed. Over the past 3 years, MSFD returned -3.82%/yr vs -16.20%/yr for PSQ. A 0.69 correlation means they provide meaningful diversification when combined. MSFD charges 1.06%/yr vs 0.95%/yr for PSQ.

Performance

MSFD vs. PSQ - Performance Comparison

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

Returns By Period

In the year-to-date period, MSFD achieves a 19.79% return, which is significantly higher than PSQ's -12.96% return.

MSFD

• 1D: -1.53%
• 1M: -0.73%
• 6M: 18.10%
• YTD: 19.79%
• 1Y: 25.82%
• 3Y*: -3.82%
• 5Y*: —
• 10Y*: —

PSQ

• 1D: 1.93%
• 1M: 1.24%
• 6M: -11.29%
• YTD: -12.96%
• 1Y: -19.78%
• 3Y*: -16.20%
• 5Y*: -12.44%
• 10Y*: -18.71%

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

MSFD vs. PSQ - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022
MSFD Direxion Daily MSFT Bear 1X Shares	19.79%	-13.36%	-7.86%	-35.90%	3.88%
PSQ ProShares Short QQQ	-12.96%	-15.51%	-15.68%	-32.01%	8.06%

Correlation

The correlation between MSFD and PSQ is 0.39, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.39
Correlation (3Y) Calculated over the trailing 3-year period	0.63
Correlation (All Time) Calculated using the full available price history since Sep 7, 2022	0.69

Over the past year, the correlation between MSFD and PSQ has dropped to 0.39 - well below their long-term average of 0.69, suggesting their price drivers have been diverging.

Return for Risk

MSFD vs. PSQ — Risk / Return Rank

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

MSFD

MSFD Risk / Return Rank: 32
MSFD Sharpe Ratio Rank: 32
MSFD Sortino Ratio Rank: 35
MSFD Omega Ratio Rank: 35
MSFD Calmar Ratio Rank: 28
MSFD Martin Ratio Rank: 31

PSQ

PSQ Risk / Return Rank: 1
PSQ Sharpe Ratio Rank: 1
PSQ Sortino Ratio Rank: 2
PSQ Omega Ratio Rank: 2
PSQ Calmar Ratio Rank: 2
PSQ Martin Ratio Rank: 0

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. PSQ - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Direxion Daily MSFT Bear 1X Shares (MSFD) and ProShares Short QQQ (PSQ). 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	PSQ	Difference
Sharpe ratio: Return per unit of total volatility	0.95	-1.07	+2.02
Sortino ratio: Return per unit of downside risk	1.52	-1.54	+3.07
Omega ratio: Gain probability vs. loss probability	1.19	0.83	+0.36
Calmar ratio: Return relative to maximum drawdown	1.12	-0.80	+1.91
Martin ratio: Return relative to average drawdown	3.58	-1.67	+5.25

MSFD vs. PSQ - Sharpe Ratio Comparison

The current MSFD Sharpe Ratio is 0.95, which is higher than the PSQ Sharpe Ratio of -1.07. The chart below compares the historical Sharpe Ratios of MSFD and PSQ, 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. PSQ - Drawdown Comparison

The maximum MSFD drawdown since its inception was -59.90%, smaller than the maximum PSQ drawdown of -98.26%. Use the drawdown chart below to compare losses from any high point for MSFD and PSQ.

Drawdown Indicators

	MSFD	PSQ	Difference
Max Drawdown Largest peak-to-trough decline	-59.90%	-98.26%	+38.36%
Max Drawdown (1Y) Largest decline over 1 year	-23.25%	-24.83%	+1.58%
Max Drawdown (3Y) Largest decline over 3 years	-40.50%	-49.65%	+9.15%
Max Drawdown (5Y) Largest decline over 5 years	—	-60.91%	—
Max Drawdown (10Y) Largest decline over 10 years	—	-87.94%	—
Current Drawdown Current decline from peak	-45.97%	-98.18%	+52.21%
Average Drawdown Average peak-to-trough decline	-41.64%	-74.08%	+32.44%
Ulcer Index Depth and duration of drawdowns from previous peaks	7.23%	11.88%	-4.65%

Volatility

MSFD vs. PSQ - Volatility Comparison

Direxion Daily MSFT Bear 1X Shares (MSFD) has a higher volatility of 10.57% compared to ProShares Short QQQ (PSQ) at 8.62%. This indicates that MSFD's price experiences larger fluctuations and is considered to be riskier than PSQ based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	MSFD	PSQ	Difference
Volatility (1M) Calculated over the trailing 1-month period	10.57%	8.62%	+1.95%
Volatility (6M) Calculated over the trailing 6-month period	23.99%	15.32%	+8.67%
Volatility (1Y) Calculated over the trailing 1-year period	27.34%	18.59%	+8.75%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	26.39%	22.82%	+3.57%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	26.39%	22.40%	+3.99%

MSFD vs. PSQ - Expense Ratio Comparison

MSFD has a 1.06% expense ratio, which is higher than PSQ's 0.95% expense ratio.

Dividends

MSFD vs. PSQ - Dividend Comparison

MSFD's dividend yield for the trailing twelve months is around 3.30%, less than PSQ's 4.40% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017
MSFD Direxion Daily MSFT Bear 1X Shares	3.30%	3.33%	4.46%	4.43%	0.74%	0.00%	0.00%	0.00%	0.00%	0.00%
PSQ ProShares Short QQQ	4.40%	4.97%	7.15%	6.01%	0.35%	0.00%	0.31%	1.75%	0.95%	0.02%

Frequently Asked Questions

Can I hold both MSFD and PSQ in my portfolio?

MSFD and PSQ have a correlation of 0.39, 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 PSQ?

MSFD has higher volatility (10.57%) compared to PSQ (8.62%). In terms of maximum drawdown, MSFD dropped -59.90% vs PSQ's -98.26%.

Which ETF is better, MSFD or PSQ?

On 3-year performance, MSFD leads with -3.82% vs -16.20% for PSQ. On fees, PSQ is cheaper at 0.95% per year. On volatility, PSQ has been the lower-risk option at 8.62%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, MSFD or PSQ?

Over the 3-year period, MSFD has performed better with a -3.82% return vs -16.20%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, MSFD or PSQ?

PSQ is cheaper with a 0.95% expense ratio, compared with 1.06% for MSFD.

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

PSQ has the higher dividend yield at 4.40%, compared with 3.30% for MSFD.

What is the main difference between MSFD and PSQ?

MSFD tracks Microsoft Corporation (-100%), while PSQ tracks NASDAQ-100 Index (-100%). They also come from different issuers: Direxion and ProShares. Their fees differ too: 1.06% for MSFD and 0.95% for PSQ.

Which has better risk-adjusted returns?

MSFD currently has the higher Sharpe Ratio (0.95 vs -1.07), 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.