YQQQ vs. MSFD

Last updated Jun 4, 2026

YQQQ (YieldMax Short N100 Option Income Strategy ETF) and MSFD (Direxion Daily MSFT Bear 1X Shares) are both exchange-traded funds - YQQQ is a Derivative Income fund actively managed by YieldMax, while MSFD is a Inverse Equities fund tracking the Microsoft Corporation (-100%). YQQQ is actively managed, while MSFD is passively managed. Over the past year, YQQQ returned -14.25% vs 7.43% for MSFD. A 0.60 correlation means they provide meaningful diversification when combined. YQQQ charges 0.99%/yr vs 1.06%/yr for MSFD.

Performance

YQQQ vs. MSFD - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in YieldMax Short N100 Option Income Strategy ETF (YQQQ) 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, YQQQ achieves a -8.94% return, which is significantly lower than MSFD's 10.43% return.

YQQQ

• 1D: 0.06%
• 1M: -7.64%
• YTD: -8.94%
• 6M: -6.62%
• 1Y: -14.25%
• 3Y*: —
• 5Y*: —
• 10Y*: —

MSFD

• 1D: 3.26%
• 1M: -3.86%
• YTD: 10.43%
• 6M: 9.36%
• 1Y: 7.43%
• 3Y*: -7.16%
• 5Y*: —
• 10Y*: —

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

YQQQ vs. MSFD - Yearly Performance Comparison

	2026 (YTD)	2025	2024
YQQQ YieldMax Short N100 Option Income Strategy ETF	-8.94%	-9.97%	-4.06%
MSFD Direxion Daily MSFT Bear 1X Shares	10.43%	-13.36%	1.08%

Correlation

The correlation between YQQQ and MSFD is 0.48, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.48
Correlation (All Time) Calculated using the full available price history since Aug 16, 2024	0.60

The correlation between YQQQ and MSFD shifts across timeframes, from 0.48 (1 year) to 0.60 (all time), reflecting how their relationship changes across market environments.

Return for Risk

YQQQ vs. MSFD — Risk / Return Rank

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

YQQQ

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

MSFD

MSFD Risk / Return Rank: 13
MSFD Sharpe Ratio Rank: 13
MSFD Sortino Ratio Rank: 14
MSFD Omega Ratio Rank: 14
MSFD Calmar Ratio Rank: 13
MSFD Martin Ratio Rank: 13

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.

YQQQ vs. MSFD - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for YieldMax Short N100 Option Income Strategy ETF (YQQQ) 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.

	YQQQ	MSFD	Difference
Sharpe ratio: Return per unit of total volatility	-1.14	0.29	-1.44
Sortino ratio: Return per unit of downside risk	-1.55	0.63	-2.18
Omega ratio: Gain probability vs. loss probability	0.83	1.08	-0.25
Calmar ratio: Return relative to maximum drawdown	-0.69	0.32	-1.01
Martin ratio: Return relative to average drawdown	-1.68	0.89	-2.57
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

YQQQ vs. MSFD - Sharpe Ratio Comparison

The current YQQQ Sharpe Ratio is -1.14, which is lower than the MSFD Sharpe Ratio of 0.29. The chart below compares the historical Sharpe Ratios of YQQQ 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

	YQQQ	MSFD	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	-1.14	0.29	-1.44
Sharpe Ratio (All Time) Calculated using the full available price history	-0.77	-0.51	-0.26

Drawdowns

YQQQ vs. MSFD - Drawdown Comparison

The maximum YQQQ drawdown since its inception was -28.21%, smaller than the maximum MSFD drawdown of -59.90%. Use the drawdown chart below to compare losses from any high point for YQQQ and MSFD.

Drawdown Indicators

	YQQQ	MSFD	Difference
Max Drawdown Largest peak-to-trough decline	-28.21%	-59.90%	+31.69%
Max Drawdown (1Y) Largest decline over 1 year	-20.82%	-23.25%	+2.43%
Max Drawdown (3Y) Largest decline over 3 years	—	-40.50%	—
Current Drawdown Current decline from peak	-28.17%	-50.20%	+22.03%
Average Drawdown Average peak-to-trough decline	-14.22%	-41.59%	+27.37%
Ulcer Index Depth and duration of drawdowns from previous peaks	8.52%	8.40%	+0.12%

Volatility

YQQQ vs. MSFD - Volatility Comparison

The current volatility for YieldMax Short N100 Option Income Strategy ETF (YQQQ) is 3.90%, while Direxion Daily MSFT Bear 1X Shares (MSFD) has a volatility of 10.12%. This indicates that YQQQ 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

	YQQQ	MSFD	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.90%	10.12%	-6.22%
Volatility (6M) Calculated over the trailing 6-month period	9.87%	22.06%	-12.19%
Volatility (1Y) Calculated over the trailing 1-year period	12.51%	25.32%	-12.81%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	16.26%	26.15%	-9.89%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	16.26%	26.15%	-9.89%

YQQQ vs. MSFD - Expense Ratio Comparison

YQQQ has a 0.99% expense ratio, which is lower than MSFD's 1.06% expense ratio.

Dividends

YQQQ vs. MSFD - Dividend Comparison

YQQQ's dividend yield for the trailing twelve months is around 31.75%, more than MSFD's 2.83% yield.

Position	TTM	2025	2024	2023	2022
MSFD Direxion Daily MSFT Bear 1X Shares	2.83%	3.33%	4.46%	4.43%	0.74%
YQQQ YieldMax Short N100 Option Income Strategy ETF	31.75%	31.71%	7.88%	0.00%	0.00%

Frequently Asked Questions

Can I hold both YQQQ and MSFD in my portfolio?

YQQQ and MSFD have a correlation of 0.48, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, YQQQ or MSFD?

MSFD has higher volatility (10.12%) compared to YQQQ (3.90%). In terms of maximum drawdown, YQQQ dropped -28.21% vs MSFD's -59.90%.

Which ETF is better, YQQQ or MSFD?

On 1-year performance, MSFD leads with 7.43% vs -14.25% for YQQQ. On fees, YQQQ is cheaper at 0.99% per year. On volatility, YQQQ has been the lower-risk option at 3.90%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, YQQQ or MSFD?

Over the 1-year period, MSFD has performed better with a 7.43% return vs -14.25%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, YQQQ or MSFD?

YQQQ is cheaper with a 0.99% expense ratio, compared with 1.06% for MSFD.

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

YQQQ has the higher dividend yield at 31.75%, compared with 2.83% for MSFD.

What is the main difference between YQQQ and MSFD?

YQQQ is categorized as Derivative Income, while MSFD is Inverse Equities. They also come from different issuers: YieldMax and Direxion. Their fees differ too: 0.99% for YQQQ and 1.06% for MSFD.

Which has better risk-adjusted returns?

MSFD currently has the higher Sharpe Ratio (0.29 vs -1.14), 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.