MSFU vs. FDL

Last updated Jun 26, 2026

MSFU (Direxion Daily MSFT Bull 2X Shares) and FDL (First Trust Morningstar Dividend Leaders Index Fund) are both exchange-traded funds - MSFU is a Leveraged Equities fund tracking the Microsoft Corporation (150%), while FDL is a Large Cap Value Equities fund tracking the Morningstar Dividend Leaders Index. Both are passively managed. Over the past 3 years, MSFU returned -11.71%/yr vs 18.84%/yr for FDL. At a 0.15 correlation, their price movements are largely independent. MSFU charges 1.04%/yr vs 0.43%/yr for FDL.

Performance

MSFU vs. FDL - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Direxion Daily MSFT Bull 2X Shares (MSFU) and First Trust Morningstar Dividend Leaders Index Fund (FDL). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, MSFU achieves a -51.47% return, which is significantly lower than FDL's 12.82% return.

MSFU

• 1D: -7.02%
• 1M: -29.71%
• YTD: -51.47%
• 6M: -52.42%
• 1Y: -56.16%
• 3Y*: -11.71%
• 5Y*: —
• 10Y*: —

FDL

• 1D: 0.46%
• 1M: -1.40%
• YTD: 12.82%
• 6M: 12.61%
• 1Y: 23.52%
• 3Y*: 18.84%
• 5Y*: 13.04%
• 10Y*: 11.24%

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

MSFU vs. FDL - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022
MSFU Direxion Daily MSFT Bull 2X Shares	-51.47%	13.36%	5.80%	83.04%	-13.28%
FDL First Trust Morningstar Dividend Leaders Index Fund	12.82%	14.79%	17.98%	2.94%	5.42%

Correlation

The correlation between MSFU and FDL is -0.13, meaning they tend to move in opposite directions. This is especially valuable for risk management - when one declines, the other has historically tended to hold steady or rise.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	-0.13
Correlation (3Y) Calculated over the trailing 3-year period	0.03
Correlation (All Time) Calculated using the full available price history since Sep 7, 2022	0.15

The correlation between MSFU and FDL shifts across timeframes, from -0.13 (1 year) to 0.15 (all time), reflecting how their relationship changes across market environments.

MSFU vs. FDL - Sectors Allocation Comparison

Sectors	MSFU	FDL
Technology	100.0%	1.4%
Basic Materials	-	0.3%
Communication Services	-	10.6%
Consumer Cyclical	-	4.7%
Consumer Defensive	-	14.4%
Energy	-	25.7%
Financial Services	-	15.2%
Healthcare	-	17.6%
Industrials	-	3.9%
Real Estate	-	-
Utilities	-	6.5%

Return for Risk

MSFU vs. FDL — Risk / Return Rank

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

MSFU

MSFU Risk / Return Rank: 1
MSFU Sharpe Ratio Rank: 1
MSFU Sortino Ratio Rank: 1
MSFU Omega Ratio Rank: 1
MSFU Calmar Ratio Rank: 1
MSFU Martin Ratio Rank: 0

FDL

FDL Risk / Return Rank: 79
FDL Sharpe Ratio Rank: 74
FDL Sortino Ratio Rank: 81
FDL Omega Ratio Rank: 70
FDL Calmar Ratio Rank: 93
FDL Martin Ratio Rank: 78

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.

MSFU vs. FDL - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Direxion Daily MSFT Bull 2X Shares (MSFU) and First Trust Morningstar Dividend Leaders Index Fund (FDL). 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.

	MSFU	FDL	Difference
Sharpe ratio: Return per unit of total volatility	-1.07	2.05	-3.13
Sortino ratio: Return per unit of downside risk	-1.66	3.11	-4.77
Omega ratio: Gain probability vs. loss probability	0.79	1.36	-0.57
Calmar ratio: Return relative to maximum drawdown	-0.90	5.53	-6.43
Martin ratio: Return relative to average drawdown	-1.67	12.87	-14.54

MSFU vs. FDL - Sharpe Ratio Comparison

The current MSFU Sharpe Ratio is -1.07, which is lower than the FDL Sharpe Ratio of 2.05. The chart below compares the historical Sharpe Ratios of MSFU and FDL, 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

MSFU vs. FDL - Drawdown Comparison

The maximum MSFU drawdown since its inception was -62.43%, smaller than the maximum FDL drawdown of -65.93%. Use the drawdown chart below to compare losses from any high point for MSFU and FDL.

Drawdown Indicators

	MSFU	FDL	Difference
Max Drawdown Largest peak-to-trough decline	-62.43%	-65.93%	+3.50%
Max Drawdown (1Y) Largest decline over 1 year	-62.43%	-4.27%	-58.16%
Max Drawdown (3Y) Largest decline over 3 years	-62.43%	-12.24%	-50.19%
Max Drawdown (5Y) Largest decline over 5 years	—	-16.46%	—
Max Drawdown (10Y) Largest decline over 10 years	—	-41.40%	—
Current Drawdown Current decline from peak	-62.43%	-2.96%	-59.47%
Average Drawdown Average peak-to-trough decline	-17.08%	-9.63%	-7.45%
Ulcer Index Depth and duration of drawdowns from previous peaks	33.63%	1.83%	+31.80%

Volatility

MSFU vs. FDL - Volatility Comparison

Direxion Daily MSFT Bull 2X Shares (MSFU) has a higher volatility of 23.61% compared to First Trust Morningstar Dividend Leaders Index Fund (FDL) at 3.39%. This indicates that MSFU's price experiences larger fluctuations and is considered to be riskier than FDL based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	MSFU	FDL	Difference
Volatility (1M) Calculated over the trailing 1-month period	23.61%	3.39%	+20.22%
Volatility (6M) Calculated over the trailing 6-month period	47.20%	8.09%	+39.11%
Volatility (1Y) Calculated over the trailing 1-year period	52.41%	11.55%	+40.86%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	46.77%	14.31%	+32.46%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	46.77%	17.10%	+29.67%

MSFU vs. FDL - Expense Ratio Comparison

MSFU has a 1.04% expense ratio, which is higher than FDL's 0.43% expense ratio.

Dividends

MSFU vs. FDL - Dividend Comparison

MSFU's dividend yield for the trailing twelve months is around 15.25%, more than FDL's 4.69% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
FDL First Trust Morningstar Dividend Leaders Index Fund	4.69%	4.04%	4.96%	4.58%	3.58%	4.59%	4.48%	3.75%	3.97%	3.18%	2.93%	3.65%
MSFU Direxion Daily MSFT Bull 2X Shares	15.25%	8.15%	7.00%	2.11%	0.54%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both MSFU and FDL in my portfolio?

MSFU and FDL have a correlation of -0.13, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, MSFU or FDL?

MSFU has higher volatility (23.61%) compared to FDL (3.39%). In terms of maximum drawdown, MSFU dropped -62.43% vs FDL's -65.93%.

Which ETF is better, MSFU or FDL?

On 3-year performance, FDL leads with 18.84% vs -11.71% for MSFU. On fees, FDL is cheaper at 0.43% per year. On volatility, FDL has been the lower-risk option at 3.39%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, MSFU or FDL?

Over the 3-year period, FDL has performed better with a 18.84% return vs -11.71%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, MSFU or FDL?

FDL is cheaper with a 0.43% expense ratio, compared with 1.04% for MSFU.

Which ETF pays a higher dividend yield, MSFU or FDL?

MSFU has the higher dividend yield at 15.25%, compared with 4.69% for FDL.

What is the main difference between MSFU and FDL?

MSFU is categorized as Leveraged Equities, while FDL is Large Cap Value Equities. MSFU tracks Microsoft Corporation (150%), while FDL tracks Morningstar Dividend Leaders Index. They also come from different issuers: Direxion and First Trust. Their fees differ too: 1.04% for MSFU and 0.43% for FDL.

Which has better risk-adjusted returns?

FDL currently has the higher Sharpe Ratio (2.05 vs -1.07), 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.