At a glance
MSFU charges 0.98% a year. It has $761.4M in assets; it paid 7.51% of its price in distributions over the past 12 months, quarterly. Over the past year it returned −16.7% with distributions reinvested (S&P 500: +11.5%); over three years it returned +14.3% a year.
The short version
Direxion Daily MSFT Bull 2X Shares (MSFU) aims to deliver twice Microsoft's (MSFT) stock return for a single day. It gets most of that exposure through swap agreements and resets its leverage every trading day. Because of that daily reset, returns over weeks or years can differ sharply from 2× Microsoft's. The fund fell 62.3% from August 4, 2025 to June 25, 2026, and it charges 0.98% a year.
Price history
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MSFU -16.7% over the year to Oct 27, 2026, total return with distributions reinvested.
How it has behaved
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | Since start | |
|---|---|---|---|---|---|---|
| MSFU official prospectus, to Dec 31, 2025 | — | +13.79% | — | — | — | +22.57% |
| MSFU price data to Oct 27, 2026 | +2.9% | -16.7% | +14.3% | — | — | +17.7% |
- Over the year to Oct 27, 2026, MSFU returned -16.7%.
- Its worst full calendar year was 2024 (+5.8%); its best was 2023 (+83.0%).
- The deepest fall in its price history was 62.3% (Aug 4, 2025 to Jun 25, 2026), not yet recovered.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | +2.9% | — |
| 2025 | +13.7% | +13.79% |
| 2024 | +5.8% | +5.76% |
| 2023 | +83.0% | +82.96% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Before this security existed |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Before this security existed |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Before this security existed |
Dividends and income
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2026 (to date) | $0.5700 | |
| 2025 | $3.3800 | +22.0% |
| 2024 | $2.7700 | +233.7% |
| 2023 | $0.8300 |
What's inside
As of Jul 31, 2026, most of the fund sat in cash, Treasury bills and money-market holdings (84.77% of net assets), with its exposure coming from 4 swap and futures positions rather than from owning the stocks outright.
| Holding | Weight | |
|---|---|---|
| MICROSOFT CORP | 11.08% |
By country
United States 11.08%By asset type
Stocks 11.08%What changed recently
- Over the three months to Jul 31, 2026, investors withdrew a net $276.6M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +20.80%, -32.88%, +50.26%.
How it works
MSFU is managed by Rafferty Asset Management under the Direxion name, and it does not track an index. It seeks 200% of Microsoft's return each trading day, measured from one market close to the next, before fees. It invests at least 80% of net assets in Microsoft shares and in instruments that together provide 2× exposure. The main tool is a swap agreement: a contract in which a major financial institution pays the fund twice Microsoft's daily return on the fund's net assets. As of July 31, 2026, Microsoft shares were 11.08% of the fund's $761 million. Cash and short-term holdings such as money market funds and US government securities were 84.77%, and four Microsoft swaps supplied the rest of the exposure.
At each day's close, the adviser resets exposure to 2×. It adds exposure after Microsoft rises and cuts it after Microsoft falls. Because of this reset, each day's return compounds on the last, so results over weeks or months can drift far from twice Microsoft's. The prospectus warns that the fund will lose money if Microsoft ends flat over time. It can even lose money while Microsoft rises.
The fund is non-diversified, meaning it can concentrate heavily, and its exposure is tied to one software company. It may lend up to one-third of its assets. Its board can change the objective without a shareholder vote.
What it really costs
- MSFU charges 0.98% a year.
- Of that, 0.75% is the management fee; the rest covers other fund expenses.
- Using the prospectus's standard example, $10,000 invested would cost about $100 in the first year and $1,201 over 10 years (assuming a 5% annual return).
| Cost of $10,000 (SEC example) | 1 yr | 3 yrs | 5 yrs | 10 yrs |
|---|---|---|---|---|
| MSFU | $100 | $312 | $542 | $1,201 |
Structure and tax notes
- Resets its exposure every day. Over periods longer than a day, compounding means returns can differ sharply from 2× the index — usually worse in choppy markets. Built for short-term trading, not buy-and-hold.
In a retirement portfolio
It seeks 2× Microsoft's return for one day at a time, and its daily reset and 62.3% peak-to-trough drop make it poorly suited to buy-and-hold or drawdown needs.
MSFU is built for short-term bets on Microsoft. It launched on September 7, 2022, so it has no record through the 2008 crisis, the 2020 COVID crash or the full 2022 bear market. Its weakest calendar year, 2024, was still a 5.8% gain. But it fell 62.3% from August 4, 2025 to June 25, 2026 and had not recovered by October 27, 2026. Selling during a drop like that locks in deep losses. Its trailing yield was 7.51% as of October 27, 2026, paid quarterly, but payouts from a leveraged swap fund can swing widely. Under the SEC's standard example, costs total $100 on $10,000 in year one and $1,201 over 10 years. Past results don't predict future ones, and a plan should look at the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Active traders who want twice Microsoft's daily move for a day or a few days and can monitor the position closely.
- Traders who understand daily leverage resets and can tolerate swings like the 62.3% drop from August 2025 to June 2026.
- Short-term traders who prefer leveraged Microsoft exposure in an exchange-traded fund rather than through margin borrowing or options.
Look elsewhere if
- Long-term and retirement investors: because of the daily reset, returns over months or years can stray far from 2× Microsoft's.
- Income seekers: the 7.51% trailing yield as of October 27, 2026 comes with 65% one-year volatility and a 16.7% one-year loss.
- Cost-conscious or diversification-minded investors: it charges 0.98% a year and ties nearly all its exposure to one company's stock.
Close alternatives
Matched by leveraged/inverse funds on the same index (the index could not be identified from the name).
No close alternatives found.
Questions investors ask
Is MSFU good for long-term investing?
Not by the fund's own description. MSFU seeks 200% of Microsoft's return for a single trading day only. Gains and losses compound daily, so results over longer periods can differ sharply from 2×. The prospectus says the fund can lose money even while Microsoft rises. As of October 27, 2026, its one-year price return was -16.7%. It was also still below its August 4, 2025 peak after a 62.3% drop.
How does MSFU get 2x leverage on Microsoft?
Mostly through swap agreements. In these contracts, major global financial institutions pay the fund twice Microsoft's daily return on its net assets. The fund also holds some Microsoft shares directly. As of July 31, 2026, Microsoft stock made up 11.08% of assets and cash and short-term holdings 84.77%, alongside four swap positions. The adviser rebalances at each day's close. Swaps add counterparty risk: if a bank fails to pay, the fund loses money.
Does MSFU pay dividends?
Yes, it pays distributions quarterly. Over the 12 months to October 27, 2026, it paid $3.14 per share, a trailing yield of 7.51%. That figure says little about future payouts. The fund gets most of its exposure through swaps while holding mostly cash and short-term holdings, so it doesn't simply pass along Microsoft's dividend. Distributions from leveraged funds can change a lot from one year to the next.
What's the difference between MSFU and buying MSFT stock?
Owning Microsoft shares gives the stock's full return over any period, with no fund fee. MSFU aims for twice Microsoft's return each day, charges 0.98% a year and resets its leverage daily, so its long-run results drift away from 2×. That cuts both ways. The fund gained 82.96% in 2023, but it lost 16.7% in the year to October 27, 2026. Its one-year volatility was 65%.
What is MSFU's expense ratio?
MSFU's expense ratio is 0.98% a year, according to its prospectus filed February 26, 2026. That includes a 0.75% management fee. The SEC's standard example assumes $10,000 invested, a 5% yearly return and shares sold at the end of each period. On that basis, total costs come to about $100 after one year, $312 after three, $542 after five and $1,201 after ten.