MSFT vs. PEYAX

Last updated Jun 16, 2026

MSFT (Microsoft Corporation) is a stock, while PEYAX (Putnam Large Cap Value Fund) is Large Cap Value Equities fund managed by Putnam. Over the past 10 years, MSFT returned 24.60%/yr vs 13.44%/yr for PEYAX. At a 0.50 correlation, their price movements are largely independent.

Performance

MSFT vs. PEYAX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Microsoft Corporation (MSFT) and Putnam Large Cap Value Fund (PEYAX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, MSFT achieves a -16.97% return, which is significantly lower than PEYAX's 10.82% return. Over the past 10 years, MSFT has outperformed PEYAX with an annualized return of 24.60%, while PEYAX has yielded a comparatively lower 13.44% annualized return.

MSFT

• 1D: 2.31%
• 1M: -5.05%
• YTD: -16.97%
• 6M: -15.43%
• 1Y: -15.16%
• 3Y*: 6.13%
• 5Y*: 10.11%
• 10Y*: 24.60%

PEYAX

• 1D: 0.88%
• 1M: 3.88%
• YTD: 10.82%
• 6M: 10.92%
• 1Y: 27.36%
• 3Y*: 20.10%
• 5Y*: 12.17%
• 10Y*: 13.44%

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

MSFT vs. PEYAX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
MSFT Microsoft Corporation	-16.97%	15.58%	12.93%	58.19%	-28.02%	52.48%	42.53%	57.56%	20.80%	40.73%
PEYAX Putnam Large Cap Value Fund	10.82%	20.09%	18.99%	15.09%	-8.37%	26.84%	5.87%	29.94%	-8.63%	18.79%

Correlation

The correlation between MSFT and PEYAX is 0.18, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.18
Correlation (3Y) Calculated over the trailing 3-year period	0.32
Correlation (5Y) Calculated over the trailing 5-year period	0.47
Correlation (10Y) Calculated over the trailing 10-year period	0.51
Correlation (All Time) Calculated using the full available price history since Mar 13, 1986	0.50

Over the past year, the correlation between MSFT and PEYAX has dropped to 0.18 - well below their long-term average of 0.50, suggesting their price drivers have been diverging.

Return for Risk

MSFT vs. PEYAX — Risk / Return Rank

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

MSFT

MSFT Risk / Return Rank: 20
MSFT Sharpe Ratio Rank: 16
MSFT Sortino Ratio Rank: 17
MSFT Omega Ratio Rank: 17
MSFT Calmar Ratio Rank: 27
MSFT Martin Ratio Rank: 24

PEYAX

PEYAX Risk / Return Rank: 83
PEYAX Sharpe Ratio Rank: 84
PEYAX Sortino Ratio Rank: 82
PEYAX Omega Ratio Rank: 78
PEYAX Calmar Ratio Rank: 86
PEYAX Martin Ratio Rank: 86

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.

MSFT vs. PEYAX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Microsoft Corporation (MSFT) and Putnam Large Cap Value Fund (PEYAX). 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.

	MSFT	PEYAX	Difference
Sharpe ratio: Return per unit of total volatility	-0.60	2.42	-3.02
Sortino ratio: Return per unit of downside risk	-0.68	3.43	-4.11
Omega ratio: Gain probability vs. loss probability	0.91	1.44	-0.53
Calmar ratio: Return relative to maximum drawdown	-0.45	3.66	-4.11
Martin ratio: Return relative to average drawdown	-0.92	14.17	-15.09

MSFT vs. PEYAX - Sharpe Ratio Comparison

The current MSFT Sharpe Ratio is -0.60, which is lower than the PEYAX Sharpe Ratio of 2.42. The chart below compares the historical Sharpe Ratios of MSFT and PEYAX, 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

MSFT vs. PEYAX - Drawdown Comparison

The maximum MSFT drawdown since its inception was -69.38%, which is greater than PEYAX's maximum drawdown of -56.92%. Use the drawdown chart below to compare losses from any high point for MSFT and PEYAX.

Drawdown Indicators

	MSFT	PEYAX	Difference
Max Drawdown Largest peak-to-trough decline	-69.38%	-56.92%	-12.46%
Max Drawdown (1Y) Largest decline over 1 year	-33.91%	-7.23%	-26.68%
Max Drawdown (3Y) Largest decline over 3 years	-33.91%	-15.12%	-18.79%
Max Drawdown (5Y) Largest decline over 5 years	-37.15%	-15.31%	-21.84%
Max Drawdown (10Y) Largest decline over 10 years	-37.15%	-36.06%	-1.09%
Current Drawdown Current decline from peak	-25.79%	-0.12%	-25.67%
Average Drawdown Average peak-to-trough decline	-21.78%	-14.05%	-7.73%
Ulcer Index Depth and duration of drawdowns from previous peaks	16.56%	1.87%	+14.69%

Volatility

MSFT vs. PEYAX - Volatility Comparison

Microsoft Corporation (MSFT) has a higher volatility of 10.74% compared to Putnam Large Cap Value Fund (PEYAX) at 3.99%. This indicates that MSFT's price experiences larger fluctuations and is considered to be riskier than PEYAX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	MSFT	PEYAX	Difference
Volatility (1M) Calculated over the trailing 1-month period	10.74%	3.99%	+6.75%
Volatility (6M) Calculated over the trailing 6-month period	22.41%	8.44%	+13.97%
Volatility (1Y) Calculated over the trailing 1-year period	25.54%	10.92%	+14.62%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	26.68%	14.74%	+11.94%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	27.07%	17.08%	+9.99%

Dividends

MSFT vs. PEYAX - Dividend Comparison

MSFT's dividend yield for the trailing twelve months is around 0.89%, less than PEYAX's 4.77% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
MSFT Microsoft Corporation	0.89%	0.70%	0.73%	0.74%	1.06%	0.68%	0.94%	1.20%	1.69%	1.86%	2.37%	2.33%
PEYAX Putnam Large Cap Value Fund	4.77%	5.36%	6.80%	4.93%	1.21%	7.09%	5.97%	3.79%	5.67%	3.31%	2.27%	5.86%

Frequently Asked Questions

Can I hold both MSFT and PEYAX in my portfolio?

MSFT and PEYAX have a correlation of 0.18, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, MSFT or PEYAX?

MSFT has higher volatility (10.74%) compared to PEYAX (3.99%). In terms of maximum drawdown, MSFT dropped -69.38% vs PEYAX's -56.92%.

Which has better risk-adjusted returns?

PEYAX currently has the higher Sharpe Ratio (2.42 vs -0.60), 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.