MSFO vs. USOY

Last updated Aug 4, 2026

MSFO (YieldMax MSFT Option Income Strategy ETF) and USOY (Defiance Oil Enhanced Options Income ETF) are both exchange-traded funds - MSFO is a Options Trading fund actively managed by YieldMax, while USOY is a Derivative Income fund actively managed by Defiance. Both are actively managed. Over the past year, MSFO returned -3.86% vs 35.36% for USOY. Their -0.02 correlation means they have often moved in opposite directions in the past. MSFO charges 1.03%/yr vs 1.22%/yr for USOY.

Performance

MSFO vs. USOY - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in YieldMax MSFT Option Income Strategy ETF (MSFO) and Defiance Oil Enhanced Options Income ETF (USOY). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, MSFO achieves a 0.49% return, which is significantly lower than USOY's 44.25% return.

MSFO

• 1D: 4.63%
• 1M: 20.78%
• 6M: 12.36%
• YTD: 0.49%
• 1Y: -3.86%
• 3Y*: —
• 5Y*: —
• 10Y*: —
• ALL TIME*: 15.38%

USOY

• 1D: -4.63%
• 1M: 12.58%
• 6M: 35.65%
• YTD: 44.25%
• 1Y: 35.36%
• 3Y*: —
• 5Y*: —
• 10Y*: —
• ALL TIME*: 16.63%

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

Liquidity Comparison

Position	Avg. Volume Value (2W)	Avg. Volume Value (1M)	Avg. Volume Value (3M)
MSFO YieldMax MSFT Option Income Strategy ETF	$1.07M	$907.81K	$1.05M
USOY Defiance Oil Enhanced Options Income ETF	$3.04M	$3.28M	$3.41M

MSFO vs. USOY - Yearly Performance Comparison

	2026 (YTD)	2025	2024
MSFO YieldMax MSFT Option Income Strategy ETF	0.49%	15.69%	-0.32%
USOY Defiance Oil Enhanced Options Income ETF	44.25%	-7.93%	6.13%

Correlation

The correlation between MSFO and USOY is -0.11, meaning they have often moved in opposite directions in the past. This relationship can weaken or reverse as market conditions change.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	-0.11
Correlation (All Time) Calculated using the full available price history since May 10, 2024	-0.02

Return for Risk

MSFO vs. USOY — Risk / Return Rank

Compare historical risk-adjusted metric ranks over the past 12 months.

MSFO

MSFO Risk / Return Rank: 9
MSFO Sharpe Ratio Rank: 9
MSFO Sortino Ratio Rank: 9
MSFO Omega Ratio Rank: 9
MSFO Calmar Ratio Rank: 9
MSFO Martin Ratio Rank: 9

USOY

USOY Risk / Return Rank: 39
USOY Sharpe Ratio Rank: 40
USOY Sortino Ratio Rank: 39
USOY Omega Ratio Rank: 42
USOY Calmar Ratio Rank: 39
USOY Martin Ratio Rank: 38

The rank (0–100) uses a weighted average of the Sharpe, Sortino, Omega, Calmar, and Martin percentile ranks for the trailing 12 months. Higher means stronger historical risk-adjusted performance within the peer group.

MSFO vs. USOY - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for YieldMax MSFT Option Income Strategy ETF (MSFO) and Defiance Oil Enhanced Options Income ETF (USOY). 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.

	MSFO	USOY	Difference
Sharpe ratio: Return per unit of total volatility	-0.14	1.01	-1.15
Sortino ratio: Return per unit of downside risk	-0.01	1.47	-1.48
Omega ratio: Gain probability vs. loss probability	1.00	1.20	-0.20
Calmar ratio: Return relative to maximum drawdown	-0.13	1.39	-1.52
Martin ratio: Return relative to average drawdown	-0.24	4.10	-4.34

MSFO vs. USOY - Sharpe Ratio Comparison

The current MSFO Sharpe Ratio is -0.14, which is lower than the USOY Sharpe Ratio of 1.01. The chart below compares the historical Sharpe Ratios of MSFO and USOY, 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

MSFO vs. USOY - Drawdown Comparison

The maximum MSFO drawdown since its inception was -29.65%, which is greater than USOY's maximum drawdown of -25.51%. Use the drawdown chart below to compare losses from any high point for MSFO and USOY.

Drawdown Indicators

	MSFO	USOY	Difference
Max Drawdown Largest peak-to-trough decline	-29.65%	-25.51%	-4.14%
Max Drawdown (1Y) Largest decline over 1 year	-29.65%	-25.51%	-4.14%
Current Drawdown Current decline from peak	-7.92%	-15.60%	+7.68%
Average Drawdown Average peak-to-trough decline	-7.46%	-7.18%	-0.28%
Ulcer Index Depth and duration of drawdowns from previous peaks	16.15%	8.65%	+7.50%

Volatility

MSFO vs. USOY - Volatility Comparison

The current volatility for YieldMax MSFT Option Income Strategy ETF (MSFO) is 14.36%, while Defiance Oil Enhanced Options Income ETF (USOY) has a volatility of 16.26%. This indicates that MSFO experiences smaller price fluctuations and is considered to be less risky than USOY based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	MSFO	USOY	Difference
Volatility (1M) Calculated over the trailing 1-month period	14.36%	16.26%	-1.90%
Volatility (6M) Calculated over the trailing 6-month period	23.34%	32.70%	-9.36%
Volatility (1Y) Calculated over the trailing 1-year period	27.74%	35.22%	-7.48%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	21.90%	28.35%	-6.45%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	21.90%	28.35%	-6.45%

MSFO vs. USOY - Expense Ratio Comparison

MSFO has a 1.03% expense ratio, which is lower than USOY's 1.22% expense ratio.

Dividends

MSFO vs. USOY - Dividend Comparison

MSFO's dividend yield for the trailing twelve months is around 34.78%, less than USOY's 59.33% yield.

Position	TTM	2025	2024	2023
MSFO YieldMax MSFT Option Income Strategy ETF	34.78%	33.91%	35.15%	6.44%
USOY Defiance Oil Enhanced Options Income ETF	59.33%	104.32%	48.60%	0.00%

Frequently Asked Questions

Can I hold both MSFO and USOY in my portfolio?

MSFO and USOY have a correlation of -0.11, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, MSFO or USOY?

USOY has higher volatility (16.26%) compared to MSFO (14.36%). In terms of maximum drawdown, MSFO dropped -29.65% vs USOY's -25.51%.

Which ETF is better, MSFO or USOY?

On 1-year performance, USOY leads with 35.36% vs -3.86% for MSFO. On fees, MSFO is cheaper at 1.03% per year. On volatility, MSFO has been the lower-risk option at 14.36%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, MSFO or USOY?

Over the 1-year period, USOY has performed better with a 35.36% return vs -3.86%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, MSFO or USOY?

MSFO is cheaper with a 1.03% expense ratio, compared with 1.22% for USOY.

Which ETF pays a higher dividend yield, MSFO or USOY?

USOY has the higher dividend yield at 59.33%, compared with 34.78% for MSFO.

What is the main difference between MSFO and USOY?

MSFO is categorized as Options Trading, while USOY is Derivative Income. They also come from different issuers: YieldMax and Defiance. Their fees differ too: 1.03% for MSFO and 1.22% for USOY.

Which has better risk-adjusted returns?

USOY currently has the higher Sharpe Ratio (1.01 vs -0.14), 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.