MUD vs. SEF

Last updated Jun 23, 2026

MUD (Direxion Daily MU Bear 1X Shares) and SEF (ProShares Short Financials) are both Inverse Equities funds. MUD is actively managed, while SEF is passively managed. Over the past year, MUD returned -93.60% vs -3.56% for SEF. At a 0.17 correlation, their price movements are largely independent. MUD charges 0.97%/yr vs 0.95%/yr for SEF.

Performance

MUD vs. SEF - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Direxion Daily MU Bear 1X Shares (MUD) and ProShares Short Financials (SEF). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, MUD achieves a -83.10% return, which is significantly lower than SEF's 3.06% return.

MUD

• 1D: -6.93%
• 1M: -44.97%
• YTD: -83.10%
• 6M: -83.63%
• 1Y: -93.60%
• 3Y*: —
• 5Y*: —
• 10Y*: —

SEF

• 1D: -0.57%
• 1M: -3.27%
• YTD: 3.06%
• 6M: 4.18%
• 1Y: -3.56%
• 3Y*: -12.02%
• 5Y*: -6.88%
• 10Y*: -12.43%

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

MUD vs. SEF - Yearly Performance Comparison

	2026 (YTD)	2025	2024
MUD Direxion Daily MU Bear 1X Shares	-83.10%	-78.75%	19.12%
SEF ProShares Short Financials	3.06%	-9.82%	-4.59%

Correlation

The correlation between MUD and SEF is 0.03, meaning there is essentially no relationship between their price movements. Each responds to its own set of market drivers, making them strong candidates for combining in a diversified portfolio.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.03
Correlation (All Time) Calculated using the full available price history since Oct 10, 2024	0.17

The correlation between MUD and SEF shifts across timeframes, from 0.03 (1 year) to 0.17 (all time), reflecting how their relationship changes across market environments.

Return for Risk

MUD vs. SEF — Risk / Return Rank

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

MUD

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

SEF

SEF Risk / Return Rank: 6
SEF Sharpe Ratio Rank: 6
SEF Sortino Ratio Rank: 6
SEF Omega Ratio Rank: 6
SEF Calmar Ratio Rank: 6
SEF Martin Ratio Rank: 5

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.

MUD vs. SEF - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Direxion Daily MU Bear 1X Shares (MUD) and ProShares Short Financials (SEF). 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.

	MUD	SEF	Difference
Sharpe ratio: Return per unit of total volatility	-1.32	-0.25	-1.07
Sortino ratio: Return per unit of downside risk	-4.06	-0.26	-3.80
Omega ratio: Gain probability vs. loss probability	0.56	0.97	-0.41
Calmar ratio: Return relative to maximum drawdown	-0.99	-0.32	-0.67
Martin ratio: Return relative to average drawdown	-1.46	-0.75	-0.71

MUD vs. SEF - Sharpe Ratio Comparison

The current MUD Sharpe Ratio is -1.32, which is lower than the SEF Sharpe Ratio of -0.25. The chart below compares the historical Sharpe Ratios of MUD and SEF, 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

MUD vs. SEF - Drawdown Comparison

The maximum MUD drawdown since its inception was -96.89%, roughly equal to the maximum SEF drawdown of -96.51%. Use the drawdown chart below to compare losses from any high point for MUD and SEF.

Drawdown Indicators

	MUD	SEF	Difference
Max Drawdown Largest peak-to-trough decline	-96.89%	-96.51%	-0.38%
Max Drawdown (1Y) Largest decline over 1 year	-94.52%	-11.14%	-83.38%
Max Drawdown (3Y) Largest decline over 3 years	—	-39.40%	—
Max Drawdown (5Y) Largest decline over 5 years	—	-41.62%	—
Max Drawdown (10Y) Largest decline over 10 years	—	-75.66%	—
Current Drawdown Current decline from peak	-96.89%	-96.30%	-0.59%
Average Drawdown Average peak-to-trough decline	-51.50%	-82.73%	+31.23%
Ulcer Index Depth and duration of drawdowns from previous peaks	64.02%	5.11%	+58.91%

Volatility

MUD vs. SEF - Volatility Comparison

Direxion Daily MU Bear 1X Shares (MUD) has a higher volatility of 35.25% compared to ProShares Short Financials (SEF) at 4.04%. This indicates that MUD's price experiences larger fluctuations and is considered to be riskier than SEF based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	MUD	SEF	Difference
Volatility (1M) Calculated over the trailing 1-month period	35.25%	4.04%	+31.21%
Volatility (6M) Calculated over the trailing 6-month period	61.23%	11.16%	+50.07%
Volatility (1Y) Calculated over the trailing 1-year period	71.36%	14.53%	+56.83%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	69.34%	17.97%	+51.37%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	69.34%	20.54%	+48.80%

MUD vs. SEF - Expense Ratio Comparison

MUD has a 0.97% expense ratio, which is higher than SEF's 0.95% expense ratio.

Dividends

MUD vs. SEF - Dividend Comparison

MUD's dividend yield for the trailing twelve months is around 34.86%, more than SEF's 3.54% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018
MUD Direxion Daily MU Bear 1X Shares	34.86%	9.21%	0.47%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
SEF ProShares Short Financials	3.54%	4.33%	5.72%	4.43%	0.39%	0.00%	0.12%	1.25%	0.41%

Frequently Asked Questions

Can I hold both MUD and SEF in my portfolio?

MUD and SEF have a correlation of 0.03, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, MUD or SEF?

MUD has higher volatility (35.25%) compared to SEF (4.04%). In terms of maximum drawdown, MUD dropped -96.89% vs SEF's -96.51%.

Which ETF is better, MUD or SEF?

On 1-year performance, SEF leads with -3.56% vs -93.60% for MUD. On fees, SEF is cheaper at 0.95% per year. On volatility, SEF has been the lower-risk option at 4.04%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, MUD or SEF?

Over the 1-year period, SEF has performed better with a -3.56% return vs -93.60%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, MUD or SEF?

SEF is cheaper with a 0.95% expense ratio, compared with 0.97% for MUD.

Which ETF pays a higher dividend yield, MUD or SEF?

MUD has the higher dividend yield at 34.86%, compared with 3.54% for SEF.

What is the main difference between MUD and SEF?

They also come from different issuers: Direxion and ProShares. Their fees differ too: 0.97% for MUD and 0.95% for SEF.

Which has better risk-adjusted returns?

SEF currently has the higher Sharpe Ratio (-0.25 vs -1.32), 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.