MSFU vs. TQQQ

Last updated Aug 2, 2026

MSFU (Direxion Daily MSFT Bull 2X Shares) and TQQQ (ProShares UltraPro QQQ) are both Leveraged Equities funds - MSFU tracks the Microsoft Corporation (200%) while TQQQ tracks the NASDAQ-100 Index (300%). Both are passively managed. Over the past 3 years, MSFU returned 3.90%/yr vs 43.81%/yr for TQQQ. Their 0.68 correlation means they have sometimes moved together and sometimes differently. MSFU charges 0.98%/yr vs 0.95%/yr for TQQQ.

Performance

MSFU vs. TQQQ - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Direxion Daily MSFT Bull 2X Shares (MSFU) and ProShares UltraPro QQQ (TQQQ). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, MSFU achieves a -18.87% return, which is significantly lower than TQQQ's 23.06% return.

MSFU

• 1D: 5.90%
• 1M: 37.88%
• 6M: 4.85%
• YTD: -18.87%
• 1Y: -34.49%
• 3Y*: 3.90%
• 5Y*: —
• 10Y*: —
• ALL TIME*: 11.80%

TQQQ

• 1D: 2.09%
• 1M: -11.90%
• 6M: 20.14%
• YTD: 23.06%
• 1Y: 56.87%
• 3Y*: 43.81%
• 5Y*: 15.36%
• 10Y*: 39.46%
• ALL TIME*: 42.33%

*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)
MSFU Direxion Daily MSFT Bull 2X Shares	$236.35M	$210.49M	$216.20M
TQQQ ProShares UltraPro QQQ	$4.37B	$4.57B	$5.33B

MSFU vs. TQQQ - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022
MSFU Direxion Daily MSFT Bull 2X Shares	-18.87%	13.36%	5.80%	83.04%	-13.28%
TQQQ ProShares UltraPro QQQ	23.06%	34.35%	58.27%	198.04%	-33.30%

Correlation

The correlation between MSFU and TQQQ is 0.37, which is low. Their historical price movements had little consistent relationship.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	0.37
Correlation (3Y) Balances recent behavior with more history.	0.61
Correlation (All Time) Calculated using the full available price history since Sep 7, 2022	0.68

Over the past year, the correlation between MSFU and TQQQ has dropped to 0.37 - well below their long-term average of 0.68, suggesting their price drivers have been diverging.

MSFU vs. TQQQ - Sectors Allocation Comparison

Sectors	MSFU	TQQQ
Technology	100.0%	53.8%
Basic Materials	-	1.1%
Communication Services	-	15.8%
Consumer Cyclical	-	12.3%
Consumer Defensive	-	7.7%
Energy	-	0.6%
Financial Services	-	0.2%
Healthcare	-	4.2%
Industrials	-	2.8%
Real Estate	-	0.1%
Utilities	-	1.4%

Return for Risk

MSFU vs. TQQQ — Risk / Return Rank

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

MSFU

MSFU Risk / Return Rank: 5
MSFU Sharpe Ratio Rank: 4
MSFU Sortino Ratio Rank: 5
MSFU Omega Ratio Rank: 4
MSFU Calmar Ratio Rank: 4
MSFU Martin Ratio Rank: 5

TQQQ

TQQQ Risk / Return Rank: 36
TQQQ Sharpe Ratio Rank: 34
TQQQ Sortino Ratio Rank: 37
TQQQ Omega Ratio Rank: 36
TQQQ Calmar Ratio Rank: 37
TQQQ Martin Ratio Rank: 36

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.

MSFU vs. TQQQ - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Direxion Daily MSFT Bull 2X Shares (MSFU) and ProShares UltraPro QQQ (TQQQ). 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	TQQQ	Difference
Sharpe ratio: Return per unit of total volatility	-0.59	0.83	-1.42
Sortino ratio: Return per unit of downside risk	-0.63	1.38	-2.01
Omega ratio: Gain probability vs. loss probability	0.92	1.17	-0.25
Calmar ratio: Return relative to maximum drawdown	-0.59	1.29	-1.88
Martin ratio: Return relative to average drawdown	-0.98	3.60	-4.57

MSFU vs. TQQQ - Sharpe Ratio Comparison

The current MSFU Sharpe Ratio is -0.59, which is lower than the TQQQ Sharpe Ratio of 0.83. The chart below compares the historical Sharpe Ratios of MSFU and TQQQ, 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. TQQQ - Drawdown Comparison

The maximum MSFU drawdown since its inception was -62.43%, smaller than the maximum TQQQ drawdown of -81.66%. Use the drawdown chart below to compare losses from any high point for MSFU and TQQQ.

Drawdown Indicators

	MSFU	TQQQ	Difference
Max Drawdown Largest peak-to-trough decline	-62.43%	-81.66%	+19.23%
Max Drawdown (1Y) Largest decline over 1 year	-62.43%	-36.97%	-25.46%
Max Drawdown (3Y) Largest decline over 3 years	-62.43%	-58.04%	-4.39%
Max Drawdown (5Y) Largest decline over 5 years	—	-81.66%	—
Max Drawdown (10Y) Largest decline over 10 years	—	-81.66%	—
Current Drawdown Current decline from peak	-37.20%	-25.74%	-11.46%
Average Drawdown Average peak-to-trough decline	-18.02%	-18.49%	+0.47%
Ulcer Index Depth and duration of drawdowns from previous peaks	37.69%	13.24%	+24.45%

Volatility

MSFU vs. TQQQ - Volatility Comparison

Direxion Daily MSFT Bull 2X Shares (MSFU) has a higher volatility of 29.64% compared to ProShares UltraPro QQQ (TQQQ) at 20.41%. This indicates that MSFU's price experiences larger fluctuations and is considered to be riskier than TQQQ based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	MSFU	TQQQ	Difference
Volatility (1M) Calculated over the trailing 1-month period	29.64%	20.41%	+9.23%
Volatility (6M) Calculated over the trailing 6-month period	51.29%	47.79%	+3.50%
Volatility (1Y) Calculated over the trailing 1-year period	63.22%	57.62%	+5.60%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	49.57%	68.04%	-18.47%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	49.57%	66.57%	-17.00%

MSFU vs. TQQQ - Expense Ratio Comparison

MSFU has a 0.98% expense ratio, which is higher than TQQQ's 0.95% expense ratio.

Dividends

MSFU vs. TQQQ - Dividend Comparison

MSFU's dividend yield for the trailing twelve months is around 9.13%, more than TQQQ's 0.58% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
MSFU Direxion Daily MSFT Bull 2X Shares	9.13%	8.15%	7.00%	2.11%	0.54%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
TQQQ ProShares UltraPro QQQ	0.58%	0.65%	1.27%	1.26%	0.57%	0.00%	0.00%	0.06%	0.11%	0.00%	0.00%	0.01%

Frequently Asked Questions

Can I hold both MSFU and TQQQ in my portfolio?

MSFU and TQQQ have a correlation of 0.37, 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 TQQQ?

MSFU has higher volatility (29.64%) compared to TQQQ (20.41%). In terms of maximum drawdown, MSFU dropped -62.43% vs TQQQ's -81.66%.

Which ETF is better, MSFU or TQQQ?

On 3-year performance, TQQQ leads with 43.81% vs 3.90% for MSFU. On fees, TQQQ is cheaper at 0.95% per year. On volatility, TQQQ has been the lower-risk option at 20.41%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, MSFU or TQQQ?

Over the 3-year period, TQQQ has performed better with a 43.81% return vs 3.90%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, MSFU or TQQQ?

TQQQ is cheaper with a 0.95% expense ratio, compared with 0.98% for MSFU.

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

MSFU has the higher dividend yield at 9.13%, compared with 0.58% for TQQQ.

What is the main difference between MSFU and TQQQ?

MSFU tracks Microsoft Corporation (200%), while TQQQ tracks NASDAQ-100 Index (300%). They also come from different issuers: Direxion and ProShares. Their fees differ too: 0.98% for MSFU and 0.95% for TQQQ.

Which has better risk-adjusted returns?

TQQQ currently has the higher Sharpe Ratio (0.83 vs -0.59), 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.