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MSFT vs. SPY
Performance
Return for Risk
Drawdowns
Volatility
Dividends

Performance

MSFT vs. SPY - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Microsoft Corporation (MSFT) and State Street SPDR S&P 500 ETF (SPY). The values are adjusted to include any dividend payments, if applicable.

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Returns By Period

In the year-to-date period, MSFT achieves a -18.53% return, which is significantly lower than SPY's 2.12% return. Over the past 10 years, MSFT has outperformed SPY with an annualized return of 23.16%, while SPY has yielded a comparatively lower 14.68% annualized return.


MSFT

1D
2.27%
1M
-0.62%
YTD
-18.53%
6M
-23.14%
1Y
2.14%
3Y*
12.04%
5Y*
9.56%
10Y*
23.16%

SPY

1D
1.22%
1M
5.14%
YTD
2.12%
6M
5.46%
1Y
30.29%
3Y*
20.50%
5Y*
12.32%
10Y*
14.68%
*Multi-year figures are annualized to reflect compound growth (CAGR)

MSFT vs. SPY - Yearly Performance Comparison


2026 (YTD)202520242023202220212020201920182017
MSFT
Microsoft Corporation
-18.53%15.58%12.93%58.19%-28.02%52.48%42.53%57.56%20.80%40.73%
SPY
State Street SPDR S&P 500 ETF
2.12%17.72%24.89%26.18%-18.18%28.73%18.33%31.22%-4.57%21.71%

Correlation

The correlation between MSFT and SPY is 0.57, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.


Correlation
Correlation (1Y)
Calculated over the trailing 1-year period

0.57

Correlation (3Y)
Calculated over the trailing 3-year period

0.66

Correlation (5Y)
Calculated over the trailing 5-year period

0.74

Correlation (All Time)
Calculated using the full available price history since Feb 1, 1993

0.64

The correlation between MSFT and SPY shifts across timeframes, from 0.57 (1 year) to 0.74 (5 years), reflecting how their relationship changes across market environments.

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Return for Risk

MSFT vs. SPY — Risk / Return Rank

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

MSFT
MSFT Risk / Return Rank: 3333
Overall Rank
MSFT Sharpe Ratio Rank: 3535
Sharpe Ratio Rank
MSFT Sortino Ratio Rank: 2828
Sortino Ratio Rank
MSFT Omega Ratio Rank: 2828
Omega Ratio Rank
MSFT Calmar Ratio Rank: 3636
Calmar Ratio Rank
MSFT Martin Ratio Rank: 3636
Martin Ratio Rank

SPY
SPY Risk / Return Rank: 6767
Overall Rank
SPY Sharpe Ratio Rank: 6161
Sharpe Ratio Rank
SPY Sortino Ratio Rank: 6060
Sortino Ratio Rank
SPY Omega Ratio Rank: 6464
Omega Ratio Rank
SPY Calmar Ratio Rank: 6969
Calmar Ratio Rank
SPY Martin Ratio Rank: 8181
Martin Ratio Rank
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. SPY - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Microsoft Corporation (MSFT) and State Street SPDR S&P 500 ETF (SPY). 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.


MSFTSPYDifference

Sharpe ratio

Return per unit of total volatility

0.09

2.30

-2.22

Sortino ratio

Return per unit of downside risk

0.29

3.20

-2.91

Omega ratio

Gain probability vs. loss probability

1.04

1.43

-0.39

Calmar ratio

Return relative to maximum drawdown

0.11

3.82

-3.70

Martin ratio

Return relative to average drawdown

0.28

17.31

-17.03

MSFT vs. SPY - Sharpe Ratio Comparison

The current MSFT Sharpe Ratio is 0.09, which is lower than the SPY Sharpe Ratio of 2.30. The chart below compares the historical Sharpe Ratios of MSFT and SPY, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.


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Sharpe Ratios by Period


MSFTSPYDifference

Sharpe Ratio (1Y)

Calculated over the trailing 1-year period

0.09

2.30

-2.22

Sharpe Ratio (5Y)

Calculated over the trailing 5-year period

0.37

0.72

-0.36

Sharpe Ratio (10Y)

Calculated over the trailing 10-year period

0.86

0.82

+0.04

Sharpe Ratio (All Time)

Calculated using the full available price history

0.74

0.57

+0.17

Drawdowns

MSFT vs. SPY - Drawdown Comparison

The maximum MSFT drawdown since its inception was -69.38%, which is greater than SPY's maximum drawdown of -55.19%. Use the drawdown chart below to compare losses from any high point for MSFT and SPY.


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Drawdown Indicators


MSFTSPYDifference

Max Drawdown

Largest peak-to-trough decline

-69.38%

-55.19%

-14.19%

Max Drawdown (1Y)

Largest decline over 1 year

-33.91%

-8.88%

-25.03%

Max Drawdown (5Y)

Largest decline over 5 years

-37.15%

-24.50%

-12.65%

Max Drawdown (10Y)

Largest decline over 10 years

-37.15%

-33.72%

-3.43%

Current Drawdown

Current decline from peak

-27.18%

0.00%

-27.18%

Average Drawdown

Average peak-to-trough decline

-21.78%

-9.08%

-12.70%

Ulcer Index

Depth and duration of drawdowns from previous peaks

13.69%

1.96%

+11.73%

Volatility

MSFT vs. SPY - Volatility Comparison

Microsoft Corporation (MSFT) has a higher volatility of 7.58% compared to State Street SPDR S&P 500 ETF (SPY) at 5.61%. This indicates that MSFT's price experiences larger fluctuations and is considered to be riskier than SPY based on this measure. The chart below showcases a comparison of their rolling one-month volatility.


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Volatility by Period


MSFTSPYDifference

Volatility (1M)

Calculated over the trailing 1-month period

7.58%

5.61%

+1.97%

Volatility (6M)

Calculated over the trailing 6-month period

19.44%

9.53%

+9.91%

Volatility (1Y)

Calculated over the trailing 1-year period

24.23%

13.29%

+10.94%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

26.19%

17.10%

+9.09%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

26.92%

17.94%

+8.98%

Dividends

MSFT vs. SPY - Dividend Comparison

MSFT's dividend yield for the trailing twelve months is around 0.89%, less than SPY's 1.06% yield.


TTM20252024202320222021202020192018201720162015
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%
SPY
State Street SPDR S&P 500 ETF
1.06%1.07%1.21%1.40%1.65%1.20%1.52%1.75%2.04%1.80%2.03%2.06%