MSFU vs. QQQ
Compare and contrast key facts about Direxion Daily MSFT Bull 2X Shares (MSFU) and Invesco QQQ (QQQ).
MSFU and QQQ are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. MSFU is a passively managed fund by Direxion that tracks the performance of the Microsoft Corporation (150%). It was launched on Sep 6, 2022. QQQ is a passively managed fund by Invesco that tracks the performance of the NASDAQ-100 Index. It was launched on Mar 10, 1999. Both MSFU and QQQ are passive ETFs, meaning that they are not actively managed but aim to replicate the performance of the underlying index as closely as possible.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: MSFU or QQQ.
Key characteristics
| MSFU | QQQ | |
|---|---|---|
| YTD Return | 16.96% | 15.96% |
| 1Y Return | 40.36% | 28.44% |
| Sharpe Ratio | 1.14 | 1.62 |
| Daily Std Dev | 34.71% | 17.68% |
| Max Drawdown | -29.51% | -82.98% |
| Current Drawdown | -15.65% | -5.86% |
Correlation
The correlation between MSFU and QQQ is 0.82, which is considered to be high. That indicates a strong positive relationship between their price movements. Having highly-correlated positions in a portfolio may signal a lack of diversification, potentially leading to increased risk during market downturns.
Performance
MSFU vs. QQQ - Performance Comparison
In the year-to-date period, MSFU achieves a 16.96% return, which is significantly higher than QQQ's 15.96% return. The chart below displays the growth of a $10,000 investment in both assets, with all prices adjusted for splits and dividends.
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MSFU vs. QQQ - Expense Ratio Comparison
MSFU has a 1.04% expense ratio, which is higher than QQQ's 0.20% expense ratio.
Risk-Adjusted Performance
MSFU vs. QQQ - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for Direxion Daily MSFT Bull 2X Shares (MSFU) and Invesco QQQ (QQQ). 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.
Dividends
MSFU vs. QQQ - Dividend Comparison
MSFU's dividend yield for the trailing twelve months is around 2.71%, more than QQQ's 0.50% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
MSFU Direxion Daily MSFT Bull 2X Shares | 2.14% | 2.11% | 0.54% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
QQQ Invesco QQQ | 0.50% | 0.62% | 0.80% | 0.43% | 0.55% | 0.74% | 0.91% | 0.84% | 1.06% | 0.99% | 1.41% | 1.01% |
Drawdowns
MSFU vs. QQQ - Drawdown Comparison
The maximum MSFU drawdown since its inception was -29.51%, smaller than the maximum QQQ drawdown of -82.98%. Use the drawdown chart below to compare losses from any high point for MSFU and QQQ. For additional features, visit the drawdowns tool.
Volatility
MSFU vs. QQQ - Volatility Comparison
Direxion Daily MSFT Bull 2X Shares (MSFU) has a higher volatility of 10.35% compared to Invesco QQQ (QQQ) at 6.05%. This indicates that MSFU's price experiences larger fluctuations and is considered to be riskier than QQQ based on this measure. The chart below showcases a comparison of their rolling one-month volatility.