QQQD vs. MSFD

Last updated Jun 4, 2026

QQQD (Direxion Daily Magnificent 7 Bear 1X Shares) and MSFD (Direxion Daily MSFT Bear 1X Shares) are both Inverse Equities funds from Direxion - QQQD tracks the Indxx Magnificent 7 Index (-100%) while MSFD tracks the Microsoft Corporation (-100%). Both are passively managed. Over the past year, QQQD returned -21.80% vs 3.79% for MSFD. A 0.66 correlation means they provide meaningful diversification when combined. QQQD charges 0.57%/yr vs 1.06%/yr for MSFD.

Performance

QQQD vs. MSFD - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Direxion Daily Magnificent 7 Bear 1X Shares (QQQD) and Direxion Daily MSFT Bear 1X Shares (MSFD). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, QQQD achieves a -2.89% return, which is significantly lower than MSFD's 6.94% return.

QQQD

• 1D: 1.38%
• 1M: -1.88%
• YTD: -2.89%
• 6M: -2.43%
• 1Y: -21.80%
• 3Y*: —
• 5Y*: —
• 10Y*: —

MSFD

• 1D: 4.21%
• 1M: -6.67%
• YTD: 6.94%
• 6M: 8.58%
• 1Y: 3.79%
• 3Y*: -8.15%
• 5Y*: —
• 10Y*: —

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

QQQD vs. MSFD - Yearly Performance Comparison

	2026 (YTD)	2025	2024
QQQD Direxion Daily Magnificent 7 Bear 1X Shares	-2.89%	-20.32%	-27.69%
MSFD Direxion Daily MSFT Bear 1X Shares	6.94%	-13.36%	-0.42%

Correlation

The correlation between QQQD and MSFD is 0.52, 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	0.52
Correlation (All Time) Calculated using the full available price history since Mar 8, 2024	0.66

The correlation between QQQD and MSFD shifts across timeframes, from 0.52 (1 year) to 0.66 (all time), reflecting how their relationship changes across market environments.

Return for Risk

QQQD vs. MSFD — Risk / Return Rank

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

QQQD

QQQD Risk / Return Rank: 2
QQQD Sharpe Ratio Rank: 1
QQQD Sortino Ratio Rank: 1
QQQD Omega Ratio Rank: 2
QQQD Calmar Ratio Rank: 2
QQQD Martin Ratio Rank: 3

MSFD

MSFD Risk / Return Rank: 11
MSFD Sharpe Ratio Rank: 11
MSFD Sortino Ratio Rank: 11
MSFD Omega Ratio Rank: 12
MSFD Calmar Ratio Rank: 10
MSFD Martin Ratio Rank: 10

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.

QQQD vs. MSFD - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Direxion Daily Magnificent 7 Bear 1X Shares (QQQD) and Direxion Daily MSFT Bear 1X Shares (MSFD). 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.

	QQQD	MSFD	Difference
Sharpe ratio Return per unit of total volatility	-1.08	0.15	-1.23
Sortino ratio Return per unit of downside risk	-1.55	0.42	-1.97
Omega ratio Gain probability vs. loss probability	0.83	1.05	-0.22
Calmar ratio Return relative to maximum drawdown	-0.82	0.14	-0.96
Martin ratio Return relative to average drawdown	-1.23	0.39	-1.62
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

QQQD vs. MSFD - Sharpe Ratio Comparison

The current QQQD Sharpe Ratio is -1.08, which is lower than the MSFD Sharpe Ratio of 0.15. The chart below compares the historical Sharpe Ratios of QQQD and MSFD, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	QQQD	MSFD	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	-1.08	0.15	-1.23
Sharpe Ratio (All Time) Calculated using the full available price history	-0.86	-0.54	-0.32

Drawdowns

QQQD vs. MSFD - Drawdown Comparison

The maximum QQQD drawdown since its inception was -49.47%, smaller than the maximum MSFD drawdown of -59.90%. Use the drawdown chart below to compare losses from any high point for QQQD and MSFD.

Drawdown Indicators

	QQQD	MSFD	Difference
Max Drawdown Largest peak-to-trough decline	-49.47%	-59.90%	+10.43%
Max Drawdown (1Y) Largest decline over 1 year	-26.65%	-23.25%	-3.40%
Max Drawdown (3Y) Largest decline over 3 years	—	-40.50%	—
Current Drawdown Current decline from peak	-47.50%	-51.77%	+4.27%
Average Drawdown Average peak-to-trough decline	-30.34%	-41.58%	+11.24%
Ulcer Index Depth and duration of drawdowns from previous peaks	17.72%	8.44%	+9.28%

Volatility

QQQD vs. MSFD - Volatility Comparison

The current volatility for Direxion Daily Magnificent 7 Bear 1X Shares (QQQD) is 4.76%, while Direxion Daily MSFT Bear 1X Shares (MSFD) has a volatility of 9.49%. This indicates that QQQD experiences smaller price fluctuations and is considered to be less risky than MSFD based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	QQQD	MSFD	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.76%	9.49%	-4.73%
Volatility (6M) Calculated over the trailing 6-month period	14.43%	21.86%	-7.43%
Volatility (1Y) Calculated over the trailing 1-year period	20.21%	25.12%	-4.91%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	26.77%	26.11%	+0.66%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	26.77%	26.11%	+0.66%

QQQD vs. MSFD - Expense Ratio Comparison

QQQD has a 0.57% expense ratio, which is lower than MSFD's 1.06% expense ratio.

Dividends

QQQD vs. MSFD - Dividend Comparison

QQQD's dividend yield for the trailing twelve months is around 4.07%, more than MSFD's 2.92% yield.

Position	TTM	2025	2024	2023	2022
MSFD Direxion Daily MSFT Bear 1X Shares	2.92%	3.33%	4.46%	4.43%	0.74%
QQQD Direxion Daily Magnificent 7 Bear 1X Shares	4.07%	4.33%	5.17%	0.00%	0.00%

Frequently Asked Questions

Can I hold both QQQD and MSFD in my portfolio?

QQQD and MSFD have a correlation of 0.52, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, QQQD or MSFD?

MSFD has higher volatility (9.49%) compared to QQQD (4.76%). In terms of maximum drawdown, QQQD dropped -49.47% vs MSFD's -59.90%.

Which ETF is better, QQQD or MSFD?

On 1-year performance, MSFD leads with 3.79% vs -21.80% for QQQD. On fees, QQQD is cheaper at 0.57% per year. On volatility, QQQD has been the lower-risk option at 4.76%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, QQQD or MSFD?

Over the 1-year period, MSFD has performed better with a 3.79% return vs -21.80%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, QQQD or MSFD?

QQQD is cheaper with a 0.57% expense ratio, compared with 1.06% for MSFD.

Which ETF pays a higher dividend yield, QQQD or MSFD?

QQQD has the higher dividend yield at 4.07%, compared with 2.92% for MSFD.

What is the main difference between QQQD and MSFD?

QQQD tracks Indxx Magnificent 7 Index (-100%), while MSFD tracks Microsoft Corporation (-100%). Their fees differ too: 0.57% for QQQD and 1.06% for MSFD.

Which has better risk-adjusted returns?

MSFD currently has the higher Sharpe Ratio (0.15 vs -1.08), 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.