BABU vs. TSMG

Last updated Jun 24, 2026

BABU (Direxion Daily BABA Bull 2X ETF) and TSMG (Leverage Shares 2X Long TSM Daily ETF) are both Leveraged Equities funds. BABU is passively managed, while TSMG is actively managed. At a 0.46 correlation, their price movements are largely independent. BABU charges 0.97%/yr vs 0.75%/yr for TSMG.

Performance

BABU vs. TSMG - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Direxion Daily BABA Bull 2X ETF (BABU) and Leverage Shares 2X Long TSM Daily ETF (TSMG). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

BABU

• 1D: -4.55%
• 1M: -37.71%
• YTD: —
• 6M: —
• 1Y: —
• 3Y*: —
• 5Y*: —
• 10Y*: —

TSMG

• 1D: -13.49%
• 1M: 12.90%
• YTD: 80.39%
• 6M: 88.25%
• 1Y: 241.80%
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

BABU vs. TSMG - Yearly Performance Comparison

	2026 (YTD)
BABU Direxion Daily BABA Bull 2X ETF	-64.16%
TSMG Leverage Shares 2X Long TSM Daily ETF	30.66%

Correlation

The correlation between BABU and TSMG is 0.46, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (All Time) Calculated using the full available price history since Feb 11, 2026	0.46

Return for Risk

BABU vs. TSMG — Risk / Return Rank

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

BABU

Risk / return metrics aren't available yet — we need at least 12 months of trading data to calculate them.

TSMG

TSMG Risk / Return Rank: 85
TSMG Sharpe Ratio Rank: 93
TSMG Sortino Ratio Rank: 75
TSMG Omega Ratio Rank: 70
TSMG Calmar Ratio Rank: 94
TSMG Martin Ratio Rank: 92

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.

BABU vs. TSMG - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Direxion Daily BABA Bull 2X ETF (BABU) and Leverage Shares 2X Long TSM Daily ETF (TSMG). 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.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	BABU	TSMG	Difference
Sharpe ratio: Return per unit of total volatility	—	3.17	—
Sortino ratio: Return per unit of downside risk	—	3.15	—
Omega ratio: Gain probability vs. loss probability	—	1.39	—
Calmar ratio: Return relative to maximum drawdown	—	6.90	—
Martin ratio: Return relative to average drawdown	—	22.04	—

Drawdowns

BABU vs. TSMG - Drawdown Comparison

The maximum BABU drawdown since its inception was -64.16%, roughly equal to the maximum TSMG drawdown of -63.67%. Use the drawdown chart below to compare losses from any high point for BABU and TSMG.

Drawdown Indicators

	BABU	TSMG	Difference
Max Drawdown Largest peak-to-trough decline	-64.16%	-63.67%	-0.49%
Max Drawdown (1Y) Largest decline over 1 year	—	-35.29%	—
Current Drawdown Current decline from peak	-64.16%	-13.49%	-50.67%
Average Drawdown Average peak-to-trough decline	-37.68%	-16.65%	-21.03%
Ulcer Index Depth and duration of drawdowns from previous peaks	—	11.03%	—

Volatility

Volatility by Period

	BABU	TSMG	Difference
Volatility (1M) Calculated over the trailing 1-month period	—	33.00%	—
Volatility (6M) Calculated over the trailing 6-month period	—	60.76%	—
Volatility (1Y) Calculated over the trailing 1-year period	78.53%	76.78%	+1.75%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	78.53%	83.21%	-4.68%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	78.53%	83.21%	-4.68%

BABU vs. TSMG - Expense Ratio Comparison

BABU has a 0.97% expense ratio, which is higher than TSMG's 0.75% expense ratio.

Dividends

BABU vs. TSMG - Dividend Comparison

BABU's dividend yield for the trailing twelve months is around 1.12%, less than TSMG's 6.37% yield.

Position	TTM	2025
BABU Direxion Daily BABA Bull 2X ETF	1.12%	0.00%
TSMG Leverage Shares 2X Long TSM Daily ETF	6.37%	11.48%

Frequently Asked Questions

Can I hold both BABU and TSMG in my portfolio?

BABU and TSMG have a correlation of 0.46, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which ETF is better, BABU or TSMG?

On fees, TSMG is cheaper at 0.75% per year. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF is cheaper, BABU or TSMG?

TSMG is cheaper with a 0.75% expense ratio, compared with 0.97% for BABU.

Which ETF pays a higher dividend yield, BABU or TSMG?

TSMG has the higher dividend yield at 6.37%, compared with 1.12% for BABU.

What is the main difference between BABU and TSMG?

They also come from different issuers: Direxion and Leverage Shares. Their fees differ too: 0.97% for BABU and 0.75% for TSMG.