MSFD vs. PSQ
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 -7.16%/yr vs -18.98%/yr for PSQ. A 0.73 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
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Returns By Period
In the year-to-date period, MSFD achieves a 10.43% return, which is significantly higher than PSQ's -16.45% return.
MSFD
- 1D
- 3.26%
- 1M
- -3.86%
- YTD
- 10.43%
- 6M
- 9.36%
- 1Y
- 7.43%
- 3Y*
- -7.16%
- 5Y*
- —
- 10Y*
- —
PSQ
- 1D
- 0.28%
- 1M
- -9.35%
- YTD
- -16.45%
- 6M
- -14.96%
- 1Y
- -26.29%
- 3Y*
- -18.98%
- 5Y*
- -14.55%
- 10Y*
- -19.23%
MSFD vs. PSQ - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | |
|---|---|---|---|---|---|
MSFD Direxion Daily MSFT Bear 1X Shares | 10.43% | -13.36% | -7.86% | -35.90% | 3.88% |
PSQ ProShares Short QQQ | -16.45% | -15.51% | -15.68% | -32.01% | 10.16% |
Correlation
The correlation between MSFD and PSQ is 0.49, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.49 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.68 |
Correlation (All Time) Calculated using the full available price history since Sep 8, 2022 | 0.73 |
Over the past year, the correlation between MSFD and PSQ has dropped to 0.49 - well below their long-term average of 0.73, suggesting their price drivers have been diverging.
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Return for Risk
MSFD vs. PSQ — Risk / Return Rank
MSFD
PSQ
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.
| MSFD | PSQ | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +1.94 | ||
| Sortino ratioReturn per unit of downside risk | +3.09 | ||
| Omega ratioGain probability vs. loss probability | 1.08 | 0.74 | +0.34 |
| Calmar ratioReturn relative to maximum drawdown | 0.32 | -0.98 | +1.30 |
| Martin ratioReturn relative to average drawdown | 0.89 | -2.12 | +3.02 |
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month. | |||
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Sharpe Ratios by Period
| MSFD | PSQ | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 0.29 | -1.65 | +1.94 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | — | -0.65 | — |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | — | -0.87 | — |
Sharpe Ratio (All Time)Calculated using the full available price history | -0.51 | -0.76 | +0.25 |
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.
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Drawdown Indicators
| MSFD | PSQ | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -59.90% | -98.26% | +38.36% |
Max Drawdown (1Y)Largest decline over 1 year | -23.25% | -26.93% | +3.68% |
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 | — | -88.98% | — |
Current DrawdownCurrent decline from peak | -50.20% | -98.25% | +48.05% |
Average DrawdownAverage peak-to-trough decline | -41.59% | -73.97% | +32.38% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 8.40% | 12.41% | -4.01% |
Volatility
MSFD vs. PSQ - Volatility Comparison
Direxion Daily MSFT Bear 1X Shares (MSFD) has a higher volatility of 10.12% compared to ProShares Short QQQ (PSQ) at 4.50%. 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.
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Volatility by Period
| MSFD | PSQ | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 10.12% | 4.50% | +5.62% |
Volatility (6M)Calculated over the trailing 6-month period | 22.06% | 12.14% | +9.92% |
Volatility (1Y)Calculated over the trailing 1-year period | 25.32% | 16.01% | +9.31% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 26.15% | 22.43% | +3.72% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 26.15% | 22.25% | +3.90% |
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 2.83%, less than PSQ's 5.24% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 |
|---|---|---|---|---|---|---|---|---|---|---|
MSFD Direxion Daily MSFT Bear 1X Shares | 2.83% | 3.33% | 4.46% | 4.43% | 0.74% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
PSQ ProShares Short QQQ | 5.24% | 4.97% | 7.15% | 6.01% | 0.35% | 0.00% | 0.31% | 1.75% | 0.95% | 0.02% |
Frequently Asked Questions
MSFD and PSQ have a correlation of 0.49, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
MSFD has higher volatility (10.12%) compared to PSQ (4.50%). In terms of maximum drawdown, MSFD dropped -59.90% vs PSQ's -98.26%.
On 3-year performance, MSFD leads with -7.16% vs -18.98% for PSQ. On fees, PSQ is cheaper at 0.95% per year. On volatility, PSQ has been the lower-risk option at 4.50%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 3-year period, MSFD has performed better with a -7.16% return vs -18.98%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
PSQ is cheaper with a 0.95% expense ratio, compared with 1.06% for MSFD.
PSQ has the higher dividend yield at 5.24%, compared with 2.83% for MSFD.
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.
MSFD currently has the higher Sharpe Ratio (0.29 vs -1.65), 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.
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