MSFD vs. SEF
MSFD (Direxion Daily MSFT Bear 1X Shares) and SEF (ProShares Short Financials) are both Inverse Equities funds - MSFD tracks the Microsoft Corporation (-100%) while SEF tracks the Dow Jones U.S. Financials Index (-100%). Both are passively managed. Over the past 3 years, MSFD returned -7.16%/yr vs -10.34%/yr for SEF. At a 0.38 correlation, their price movements are largely independent. MSFD charges 1.06%/yr vs 0.95%/yr for SEF.
Performance
MSFD vs. SEF - 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 SEF's 8.89% return.
MSFD
- 1D
- 3.26%
- 1M
- -3.86%
- YTD
- 10.43%
- 6M
- 9.36%
- 1Y
- 7.43%
- 3Y*
- -7.16%
- 5Y*
- —
- 10Y*
- —
SEF
- 1D
- 1.10%
- 1M
- 1.81%
- YTD
- 8.89%
- 6M
- 6.43%
- 1Y
- 3.73%
- 3Y*
- -10.34%
- 5Y*
- -5.21%
- 10Y*
- -11.50%
MSFD vs. SEF - 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% |
SEF ProShares Short Financials | 8.89% | -9.82% | -17.81% | -8.81% | -0.38% |
Correlation
The correlation between MSFD and SEF 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 (3Y) Calculated over the trailing 3-year period | 0.29 |
Correlation (All Time) Calculated using the full available price history since Sep 8, 2022 | 0.38 |
The correlation between MSFD and SEF shifts across timeframes, from 0.27 (1 year) to 0.38 (all time), reflecting how their relationship changes across market environments.
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Return for Risk
MSFD vs. SEF — Risk / Return Rank
MSFD
SEF
MSFD vs. SEF - 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 Financials (SEF). 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 | SEF | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.03 | ||
| Sortino ratioReturn per unit of downside risk | +0.13 | ||
| Omega ratioGain probability vs. loss probability | 1.08 | 1.06 | +0.02 |
| Calmar ratioReturn relative to maximum drawdown | 0.32 | 0.39 | -0.06 |
| Martin ratioReturn relative to average drawdown | 0.89 | 0.73 | +0.17 |
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 | SEF | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 0.29 | 0.26 | +0.03 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | — | -0.29 | — |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | — | -0.56 | — |
Sharpe Ratio (All Time)Calculated using the full available price history | -0.51 | -0.49 | -0.02 |
Drawdowns
MSFD vs. SEF - Drawdown Comparison
The maximum MSFD drawdown since its inception was -59.90%, smaller than the maximum SEF drawdown of -96.51%. Use the drawdown chart below to compare losses from any high point for MSFD and SEF.
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Drawdown Indicators
| MSFD | SEF | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -59.90% | -96.51% | +36.61% |
Max Drawdown (1Y)Largest decline over 1 year | -23.25% | -9.72% | -13.53% |
Max Drawdown (3Y)Largest decline over 3 years | -40.50% | -39.40% | -1.10% |
Max Drawdown (5Y)Largest decline over 5 years | — | -41.62% | — |
Max Drawdown (10Y)Largest decline over 10 years | — | -75.66% | — |
Current DrawdownCurrent decline from peak | -50.20% | -96.09% | +45.89% |
Average DrawdownAverage peak-to-trough decline | -41.59% | -82.72% | +41.13% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 8.40% | 5.14% | +3.26% |
Volatility
MSFD vs. SEF - Volatility Comparison
Direxion Daily MSFT Bear 1X Shares (MSFD) has a higher volatility of 10.12% compared to ProShares Short Financials (SEF) at 3.01%. This indicates that MSFD's price experiences larger fluctuations and is considered to be riskier than SEF based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| MSFD | SEF | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 10.12% | 3.01% | +7.11% |
Volatility (6M)Calculated over the trailing 6-month period | 22.06% | 10.85% | +11.21% |
Volatility (1Y)Calculated over the trailing 1-year period | 25.32% | 14.34% | +10.98% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 26.15% | 17.96% | +8.19% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 26.15% | 20.52% | +5.63% |
MSFD vs. SEF - Expense Ratio Comparison
MSFD has a 1.06% expense ratio, which is higher than SEF's 0.95% expense ratio.
Dividends
MSFD vs. SEF - Dividend Comparison
MSFD's dividend yield for the trailing twelve months is around 2.83%, less than SEF's 3.35% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 |
|---|---|---|---|---|---|---|---|---|---|
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% |
SEF ProShares Short Financials | 3.35% | 4.33% | 5.72% | 4.43% | 0.39% | 0.00% | 0.12% | 1.25% | 0.41% |
Frequently Asked Questions
MSFD and SEF 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.
MSFD has higher volatility (10.12%) compared to SEF (3.01%). In terms of maximum drawdown, MSFD dropped -59.90% vs SEF's -96.51%.
On 3-year performance, MSFD leads with -7.16% vs -10.34% for SEF. On fees, SEF is cheaper at 0.95% per year. On volatility, SEF has been the lower-risk option at 3.01%. 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 -10.34%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
SEF is cheaper with a 0.95% expense ratio, compared with 1.06% for MSFD.
SEF has the higher dividend yield at 3.35%, compared with 2.83% for MSFD.
MSFD tracks Microsoft Corporation (-100%), while SEF tracks Dow Jones U.S. Financials Index (-100%). They also come from different issuers: Direxion and ProShares. Their fees differ too: 1.06% for MSFD and 0.95% for SEF.
MSFD currently has the higher Sharpe Ratio (0.29 vs 0.26), 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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