^NDXT vs. TSM

Last updated Apr 3, 2026

Compare and contrast key facts about NASDAQ 100 Technology Sector Index (^NDXT) and Taiwan Semiconductor Manufacturing Company Limited (TSM).

Performance

^NDXT vs. TSM - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in NASDAQ 100 Technology Sector Index (^NDXT) and Taiwan Semiconductor Manufacturing Company Limited (TSM). The values are adjusted to include any dividend payments, if applicable.

^NDXT vs. TSM - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
^NDXT NASDAQ 100 Technology Sector Index	-4.50%	22.46%	7.13%	66.70%	-39.93%	26.98%	38.17%	47.28%	-5.49%	36.68%
TSM Taiwan Semiconductor Manufacturing Company Limited	11.88%	55.91%	92.58%	42.33%	-36.75%	12.09%	92.67%	64.85%	-3.50%	41.46%

Returns By Period

In the year-to-date period, ^NDXT achieves a -4.50% return, which is significantly lower than TSM's 11.88% return. Over the past 10 years, ^NDXT has underperformed TSM with an annualized return of 17.78%, while TSM has yielded a comparatively higher 32.63% annualized return.

^NDXT

• 1D: 0.27%
• 1M: -0.24%
• YTD: -4.50%
• 6M: -6.05%
• 1Y: 24.43%
• 3Y*: 19.36%
• 5Y*: 8.19%
• 10Y*: 17.78%

TSM

• 1D: -0.72%
• 1M: -3.72%
• YTD: 11.88%
• 6M: 18.31%
• 1Y: 101.39%
• 3Y*: 56.27%
• 5Y*: 24.16%
• 10Y*: 32.63%

*Multi-year figures are annualized to reflect compound growth (CAGR)

Return for Risk

^NDXT vs. TSM — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

^NDXT

^NDXT Risk / Return Rank: 55
^NDXT Sharpe Ratio Rank: 47
^NDXT Sortino Ratio Rank: 55
^NDXT Omega Ratio Rank: 52
^NDXT Calmar Ratio Rank: 65
^NDXT Martin Ratio Rank: 53

TSM

TSM Risk / Return Rank: 93
TSM Sharpe Ratio Rank: 94
TSM Sortino Ratio Rank: 92
TSM Omega Ratio Rank: 90
TSM Calmar Ratio Rank: 94
TSM Martin Ratio Rank: 96

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

^NDXT vs. TSM - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for NASDAQ 100 Technology Sector Index (^NDXT) and Taiwan Semiconductor Manufacturing Company Limited (TSM). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

	^NDXT	TSM	Difference
Sharpe ratio Return per unit of total volatility	0.81	2.64	-1.83
Sortino ratio Return per unit of downside risk	1.35	3.23	-1.88
Omega ratio Gain probability vs. loss probability	1.18	1.41	-0.22
Calmar ratio Return relative to maximum drawdown	1.60	5.70	-4.10
Martin ratio Return relative to average drawdown	4.87	18.99	-14.13
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

^NDXT vs. TSM - Sharpe Ratio Comparison

The current ^NDXT Sharpe Ratio is 0.81, which is lower than the TSM Sharpe Ratio of 2.64. The chart below compares the historical Sharpe Ratios of ^NDXT and TSM, offering insights into how both investments have performed under varying market conditions. These values are calculated using daily returns over the previous 12 months.

Sharpe Ratios by Period

	^NDXT	TSM	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	0.81	2.64	-1.83
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.28	0.66	-0.38
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.64	0.97	-0.32
Sharpe Ratio (All Time) Calculated using the full available price history	0.50	0.35	+0.15

Correlation

The correlation between ^NDXT and TSM is 0.68, which is considered to be moderate. This suggests that the two assets have some degree of positive relationship in their price movements. Moderate correlation can be acceptable for portfolio diversification, offering a balance between risk and potential returns.

Drawdowns

^NDXT vs. TSM - Drawdown Comparison

The maximum ^NDXT drawdown since its inception was -59.34%, smaller than the maximum TSM drawdown of -89.08%. Use the drawdown chart below to compare losses from any high point for ^NDXT and TSM.

Drawdown Indicators

	^NDXT	TSM	Difference
Max Drawdown Largest peak-to-trough decline	-59.34%	-89.08%	+29.74%
Max Drawdown (1Y) Largest decline over 1 year	-16.08%	-18.14%	+2.06%
Max Drawdown (5Y) Largest decline over 5 years	-45.71%	-56.47%	+10.76%
Max Drawdown (10Y) Largest decline over 10 years	-45.71%	-56.47%	+10.76%
Current Drawdown Current decline from peak	-10.89%	-12.31%	+1.42%
Average Drawdown Average peak-to-trough decline	-9.95%	-43.12%	+33.17%
Ulcer Index Depth and duration of drawdowns from previous peaks	5.30%	5.45%	-0.15%

Volatility

^NDXT vs. TSM - Volatility Comparison

The current volatility for NASDAQ 100 Technology Sector Index (^NDXT) is 8.31%, while Taiwan Semiconductor Manufacturing Company Limited (TSM) has a volatility of 13.81%. This indicates that ^NDXT experiences smaller price fluctuations and is considered to be less risky than TSM based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	^NDXT	TSM	Difference
Volatility (1M) Calculated over the trailing 1-month period	8.31%	13.81%	-5.50%
Volatility (6M) Calculated over the trailing 6-month period	18.51%	26.97%	-8.46%
Volatility (1Y) Calculated over the trailing 1-year period	30.22%	38.59%	-8.37%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	29.47%	36.90%	-7.43%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	27.70%	33.84%	-6.14%