MSFU vs SPY

Quick Verdict

SPY has a lower expense ratio. SPY delivered stronger 1-year returns. SPY offers more diversification with 503 holdings.

Lower Fees: SPYHigher Returns: SPYMore Diversified: SPY

Side-by-Side Comparison

MetricMSFUSPYWinner
Expense Ratio0.98%0.09%
AUM$773M$789.1B
Dividend Yield13.70%1.01%
Holdings9505
YTD Return-5.29%+13.68%
1Y Return-28.15%+21.53%
3Y Return (annualized)+11.02%+21.44%
5Y Return (annualized)-+13.18%
Volatility (annualized)51.4%15.3%
Max Drawdown-62.4%-56.5%
Fund FamilyDirexion Shares ETF TrustState Street Investment Management
CategoryAlternativeEquity
InceptionSep 7, 2022Jan 22, 1993

MSFU vs SPY Performance

Direxion Daily MSFT Bull 2X ETF (MSFU) 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 MSFU returned -28.15% while SPY returned +21.53%. Year to date, MSFU is down 5.29% versus a gain of 13.68% for SPY.

Over three years, MSFU compounded at +11.02% per year against +21.44% for SPY. Across the full 4-year window we track, MSFU has the edge at +15.72% annualized vs +8.85%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

MSFU has been the more volatile fund, with annualized monthly volatility of 51.4% 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 -62.4% for MSFU 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 0.49. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

MSFU charges 0.98% per year while SPY charges 0.09%. On a $10,000 position that is $98 vs $9 annually, a gap of $89 per year that compounds over a long holding period. On income, MSFU currently yields 13.70% against 1.01% for SPY.

Holdings Overlap

4.4%overlap

MSFU and SPY share 1 holdings out of 507 unique holdings combined, representing a 4.4% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in MSFUWeight in SPYDifference
MSFT16.39%4.43%11.96%

Frequently Asked Questions

Which is cheaper, MSFU or SPY?

MSFU has an expense ratio of 0.98% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $89 per year of difference.

Which performed better, MSFU or SPY?

Over the past year MSFU returned -28.15% vs +21.53% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (4 years), MSFU annualized +15.72% vs +8.85% for SPY. Past performance does not guarantee future results.

Which is riskier, MSFU or SPY?

MSFU has been the more volatile fund at 51.4% annualized versus 15.3% for SPY. Worst drawdown: MSFU -62.4% vs SPY -56.5%.

Should I hold both MSFU and SPY?

MSFU and SPY 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 SPY?

MSFU and SPY share 1 common holdings with a 4.4% weight overlap. Combined, they hold 507 unique securities.

Which pays a higher dividend, MSFU or SPY?

MSFU yields 13.70% while SPY yields 1.01%, so MSFU currently pays the higher dividend yield.

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