SMQ vs. MSFD

Last updated Jun 6, 2026

SMQ (Tradr 1X Short Innovation 100 Monthly ETF) and MSFD (Direxion Daily MSFT Bear 1X Shares) are both Inverse Equities funds. SMQ is actively managed, while MSFD is passively managed. At a 0.43 correlation, their price movements are largely independent. SMQ charges 1.50%/yr vs 1.06%/yr for MSFD.

Performance

SMQ vs. MSFD - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Tradr 1X Short Innovation 100 Monthly ETF (SMQ) 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, SMQ achieves a -15.77% return, which is significantly lower than MSFD's 13.15% return.

SMQ

• 1D: 4.62%
• 1M: -3.50%
• YTD: -15.77%
• 6M: -14.26%
• 1Y: —
• 3Y*: —
• 5Y*: —
• 10Y*: —

MSFD

• 1D: 2.74%
• 1M: -1.55%
• YTD: 13.15%
• 6M: 13.29%
• 1Y: 10.90%
• 3Y*: -6.61%
• 5Y*: —
• 10Y*: —

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

SMQ vs. MSFD - Yearly Performance Comparison

	2026 (YTD)	2025
SMQ Tradr 1X Short Innovation 100 Monthly ETF	-15.77%	0.39%
MSFD Direxion Daily MSFT Bear 1X Shares	13.15%	0.84%

Correlation

The correlation between SMQ and MSFD is 0.43, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (All Time) Calculated using the full available price history since Dec 2, 2025	0.43

Return for Risk

SMQ vs. MSFD — Risk / Return Rank

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

MSFD

MSFD Risk / Return Rank: 17
MSFD Sharpe Ratio Rank: 16
MSFD Sortino Ratio Rank: 18
MSFD Omega Ratio Rank: 18
MSFD Calmar Ratio Rank: 15
MSFD Martin Ratio Rank: 16

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.

SMQ vs. MSFD - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Tradr 1X Short Innovation 100 Monthly ETF (SMQ) 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.

Risk / return metrics aren't available yet — we need at least 12 months of trading data to calculate them.

Sharpe Ratios by Period

	SMQ	MSFD	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	—	0.43	—
Sharpe Ratio (All Time) Calculated using the full available price history	-1.47	-0.49	-0.98

Drawdowns

SMQ vs. MSFD - Drawdown Comparison

The maximum SMQ drawdown since its inception was -27.62%, smaller than the maximum MSFD drawdown of -59.90%. Use the drawdown chart below to compare losses from any high point for SMQ and MSFD.

Drawdown Indicators

	SMQ	MSFD	Difference
Max Drawdown Largest peak-to-trough decline	-27.62%	-59.90%	+32.28%
Max Drawdown (1Y) Largest decline over 1 year	—	-23.25%	—
Max Drawdown (3Y) Largest decline over 3 years	—	-40.50%	—
Current Drawdown Current decline from peak	-23.66%	-48.97%	+25.31%
Average Drawdown Average peak-to-trough decline	-7.66%	-41.61%	+33.95%
Ulcer Index Depth and duration of drawdowns from previous peaks	—	8.22%	—

Volatility

Volatility by Period

	SMQ	MSFD	Difference
Volatility (1M) Calculated over the trailing 1-month period	—	10.51%	—
Volatility (6M) Calculated over the trailing 6-month period	—	22.07%	—
Volatility (1Y) Calculated over the trailing 1-year period	19.18%	25.46%	-6.28%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	19.18%	26.16%	-6.98%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	19.18%	26.16%	-6.98%

SMQ vs. MSFD - Expense Ratio Comparison

SMQ has a 1.50% expense ratio, which is higher than MSFD's 1.06% expense ratio.

Dividends

SMQ vs. MSFD - Dividend Comparison

SMQ's dividend yield for the trailing twelve months is around 0.29%, less than MSFD's 2.76% yield.

Position	TTM	2025	2024	2023	2022
MSFD Direxion Daily MSFT Bear 1X Shares	2.76%	3.33%	4.46%	4.43%	0.74%
SMQ Tradr 1X Short Innovation 100 Monthly ETF	0.29%	0.25%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both SMQ and MSFD in my portfolio?

SMQ and MSFD have a correlation of 0.43, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which ETF is better, SMQ or MSFD?

On fees, MSFD is cheaper at 1.06% per year. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF is cheaper, SMQ or MSFD?

MSFD is cheaper with a 1.06% expense ratio, compared with 1.50% for SMQ.

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

MSFD has the higher dividend yield at 2.76%, compared with 0.29% for SMQ.

What is the main difference between SMQ and MSFD?

They also come from different issuers: Tradr and Direxion. Their fees differ too: 1.50% for SMQ and 1.06% for MSFD.