MSFD vs QQQ
Direxion Daily MSFT Bear 1X ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. QQQ offers more diversification with 108 holdings.
Side-by-Side Comparison
| Metric | MSFD | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 1.02% | 0.18% | |
| AUM | $18M | $496.3B | |
| Dividend Yield | 4.03% | 0.44% | |
| Holdings | 6 | 108 | |
| YTD Return | -7.54% | +17.30% | |
| 1Y Return | +1.82% | +24.93% | |
| 3Y Return (annualized) | -13.17% | +26.19% | |
| 5Y Return (annualized) | - | +15.34% | |
| Volatility (annualized) | 26.0% | 30.6% | |
| Max Drawdown | -59.9% | -83.0% | |
| Fund Family | Direxion Shares ETF Trust | Invesco (US) | |
| Category | Alternative | Equity | |
| Inception | Sep 7, 2022 | Mar 10, 1999 |
MSFD vs QQQ Performance
Direxion Daily MSFT Bear 1X ETF (MSFD) is a ETF from Direxion Shares ETF Trust and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year MSFD returned +1.82% while QQQ returned +24.93%. Year to date, MSFD is down 7.54% versus a gain of 17.30% for QQQ.
Over three years, MSFD compounded at -13.17% per year against +26.19% for QQQ. Across the full 4-year window we track, QQQ has the edge at +13.06% annualized vs -16.03%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 30.6% compared with 26.0% for MSFD. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.
The deepest peak-to-trough decline in our data was -59.9% for MSFD and -83.0% for QQQ. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.
The two funds' monthly returns correlate at -0.52. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
MSFD charges 1.02% per year while QQQ charges 0.18%. On a $10,000 position that is $102 vs $18 annually, a gap of $84 per year that compounds over a long holding period. On income, MSFD currently yields 4.03% against 0.44% for QQQ.
Holdings Overlap
MSFD and QQQ share 0 holdings out of 105 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, MSFD or QQQ?
MSFD has an expense ratio of 1.02% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $84 per year of difference.
Which performed better, MSFD or QQQ?
Over the past year MSFD returned +1.82% vs +24.93% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (4 years), MSFD annualized -16.03% vs +13.06% for QQQ. Past performance does not guarantee future results.
Which is riskier, MSFD or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 26.0% for MSFD. Worst drawdown: MSFD -59.9% vs QQQ -83.0%.
Should I hold both MSFD and QQQ?
MSFD and QQQ have a monthly-return correlation of -0.52, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between MSFD and QQQ?
MSFD and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 105 unique securities.
Which pays a higher dividend, MSFD or QQQ?
MSFD yields 4.03% while QQQ yields 0.44%, so MSFD currently pays the higher dividend yield.
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