MSFD vs SPY
Direxion Daily MSFT Bear 1X ETF vs State Street SPDR S&P 500 ETF Trust
Quick Verdict
SPY has a lower expense ratio. SPY delivered stronger 1-year returns. SPY offers more diversification with 505 holdings.
Side-by-Side Comparison
| Metric | MSFD | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 1.02% | 0.09% | |
| AUM | $18M | $821.1B | |
| Dividend Yield | 4.03% | 1.01% | |
| Holdings | 6 | 505 | |
| YTD Return | -7.37% | +13.70% | |
| 1Y Return | +2.01% | +21.44% | |
| 3Y Return (annualized) | -13.58% | +22.50% | |
| 5Y Return (annualized) | - | +13.24% | |
| Volatility (annualized) | 26.0% | 15.3% | |
| Max Drawdown | -59.9% | -56.5% | |
| Fund Family | Direxion Shares ETF Trust | State Street Investment Management | |
| Category | Alternative | Equity | |
| Inception | Sep 7, 2022 | Jan 22, 1993 |
MSFD vs SPY Performance
Direxion Daily MSFT Bear 1X ETF (MSFD) is a ETF from Direxion Shares ETF Trust and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year MSFD returned +2.01% while SPY returned +21.44%. Year to date, MSFD is down 7.37% versus a gain of 13.70% for SPY.
Over three years, MSFD compounded at -13.58% per year against +22.50% for SPY. Across the full 4-year window we track, SPY has the edge at +8.84% annualized vs -16.00%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
MSFD has been the more volatile fund, with annualized monthly volatility of 26.0% compared with 15.3% for SPY. 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 -56.5% for SPY. 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 -0.53. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
MSFD charges 1.02% per year while SPY charges 0.09%. On a $10,000 position that is $102 vs $9 annually, a gap of $93 per year that compounds over a long holding period. On income, MSFD currently yields 4.03% against 1.01% for SPY.
Holdings Overlap
MSFD and SPY share 0 holdings out of 507 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 SPY?
MSFD has an expense ratio of 1.02% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $93 per year of difference.
Which performed better, MSFD or SPY?
Over the past year MSFD returned +2.01% vs +21.44% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (4 years), MSFD annualized -16.00% vs +8.84% for SPY. Past performance does not guarantee future results.
Which is riskier, MSFD or SPY?
MSFD has been the more volatile fund at 26.0% annualized versus 15.3% for SPY. Worst drawdown: MSFD -59.9% vs SPY -56.5%.
Should I hold both MSFD and SPY?
MSFD and SPY have a monthly-return correlation of -0.53, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between MSFD and SPY?
MSFD and SPY share 0 common holdings with a 0.0% weight overlap. Combined, they hold 507 unique securities.
Which pays a higher dividend, MSFD or SPY?
MSFD yields 4.03% while SPY yields 1.01%, so MSFD currently pays the higher dividend yield.
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