MSFU vs QQQ
Direxion Daily MSFT Bull 2X 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 103 holdings.
Side-by-Side Comparison
| Metric | MSFU | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.98% | 0.18% | |
| AUM | $773M | $455.8B | |
| Dividend Yield | 13.70% | 0.41% | |
| Holdings | 9 | 108 | |
| YTD Return | -3.66% | +19.68% | |
| 1Y Return | -24.26% | +26.75% | |
| 3Y Return (annualized) | +11.65% | +26.25% | |
| 5Y Return (annualized) | - | +15.39% | |
| Volatility (annualized) | 51.5% | 30.6% | |
| Max Drawdown | -62.4% | -83.0% | |
| Fund Family | Direxion Shares ETF Trust | Invesco (US) | |
| Category | Alternative | Equity | |
| Inception | Sep 7, 2022 | Mar 10, 1999 |
MSFU vs QQQ Performance
Direxion Daily MSFT Bull 2X ETF (MSFU) 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 MSFU returned -24.26% while QQQ returned +26.75%. Year to date, MSFU is down 3.66% versus a gain of 19.68% for QQQ.
Over three years, MSFU compounded at +11.65% per year against +26.25% for QQQ. Across the full 4-year window we track, MSFU has the edge at +16.21% annualized vs +13.15%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
MSFU has been the more volatile fund, with annualized monthly volatility of 51.5% compared with 30.6% for QQQ. 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 -62.4% for MSFU 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 0.49. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
MSFU charges 0.98% per year while QQQ charges 0.18%. On a $10,000 position that is $98 vs $18 annually, a gap of $80 per year that compounds over a long holding period. On income, MSFU currently yields 13.70% against 0.41% for QQQ.
Holdings Overlap
MSFU and QQQ share 1 holdings out of 107 unique holdings combined, representing a 4.7% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in MSFU | Weight in QQQ | Difference |
|---|---|---|---|
| MSFT | 16.39% | 4.65% | 11.74% |
Frequently Asked Questions
Which is cheaper, MSFU or QQQ?
MSFU has an expense ratio of 0.98% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $80 per year of difference.
Which performed better, MSFU or QQQ?
Over the past year MSFU returned -24.26% vs +26.75% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (4 years), MSFU annualized +16.21% vs +13.15% for QQQ. Past performance does not guarantee future results.
Which is riskier, MSFU or QQQ?
MSFU has been the more volatile fund at 51.5% annualized versus 30.6% for QQQ. Worst drawdown: MSFU -62.4% vs QQQ -83.0%.
Should I hold both MSFU and QQQ?
MSFU and QQQ have a monthly-return correlation of 0.49, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between MSFU and QQQ?
MSFU and QQQ share 1 common holdings with a 4.7% weight overlap. Combined, they hold 107 unique securities.
Which pays a higher dividend, MSFU or QQQ?
MSFU yields 13.70% while QQQ yields 0.41%, so MSFU currently pays the higher dividend yield.
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