BABX vs. TSMX

Last updated Jun 24, 2026

BABX (GraniteShares 2x Long BABA Daily ETF) and TSMX (Direxion Daily TSM Bull 2X Shares) are both Leveraged Equities funds. Both are actively managed. Over the past year, BABX returned -36.03% vs 240.03% for TSMX. At a 0.27 correlation, their price movements are largely independent. BABX charges 1.15%/yr vs 1.05%/yr for TSMX.

Performance

BABX vs. TSMX - Performance Comparison

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

Returns By Period

In the year-to-date period, BABX achieves a -55.91% return, which is significantly lower than TSMX's 80.35% return.

BABX

• 1D: -4.45%
• 1M: -37.51%
• YTD: -55.91%
• 6M: -58.68%
• 1Y: -36.03%
• 3Y*: -7.54%
• 5Y*: —
• 10Y*: —

TSMX

• 1D: -13.50%
• 1M: 12.92%
• YTD: 80.35%
• 6M: 88.28%
• 1Y: 240.03%
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

BABX vs. TSMX - Yearly Performance Comparison

	2026 (YTD)	2025	2024
BABX GraniteShares 2x Long BABA Daily ETF	-55.91%	123.85%	-48.76%
TSMX Direxion Daily TSM Bull 2X Shares	80.35%	81.48%	16.84%

Correlation

The correlation between BABX and TSMX is 0.33, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.33
Correlation (All Time) Calculated using the full available price history since Oct 3, 2024	0.27

BABX vs. TSMX - Sectors Allocation Comparison

Sectors	BABX	TSMX
Consumer Cyclical	66.6%	-
Basic Materials	-	-
Communication Services	-	-
Consumer Defensive	-	-
Energy	-	-
Financial Services	-	-
Healthcare	-	-
Industrials	-	-
Real Estate	-	-
Technology	-	100.0%
Utilities	-	-

Return for Risk

BABX vs. TSMX — Risk / Return Rank

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

BABX

BABX Risk / Return Rank: 6
BABX Sharpe Ratio Rank: 5
BABX Sortino Ratio Rank: 7
BABX Omega Ratio Rank: 7
BABX Calmar Ratio Rank: 5
BABX Martin Ratio Rank: 5

TSMX

TSMX Risk / Return Rank: 85
TSMX Sharpe Ratio Rank: 93
TSMX Sortino Ratio Rank: 75
TSMX Omega Ratio Rank: 69
TSMX Calmar Ratio Rank: 94
TSMX 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.

BABX vs. TSMX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for GraniteShares 2x Long BABA Daily ETF (BABX) and Direxion Daily TSM Bull 2X Shares (TSMX). 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.

	BABX	TSMX	Difference
Sharpe ratio: Return per unit of total volatility	-0.41	3.15	-3.56
Sortino ratio: Return per unit of downside risk	-0.14	3.15	-3.29
Omega ratio: Gain probability vs. loss probability	0.99	1.39	-0.40
Calmar ratio: Return relative to maximum drawdown	-0.48	6.92	-7.40
Martin ratio: Return relative to average drawdown	-0.91	22.13	-23.04

BABX vs. TSMX - Sharpe Ratio Comparison

The current BABX Sharpe Ratio is -0.41, which is lower than the TSMX Sharpe Ratio of 3.15. The chart below compares the historical Sharpe Ratios of BABX and TSMX, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

BABX vs. TSMX - Drawdown Comparison

The maximum BABX drawdown since its inception was -75.11%, which is greater than TSMX's maximum drawdown of -63.80%. Use the drawdown chart below to compare losses from any high point for BABX and TSMX.

Drawdown Indicators

	BABX	TSMX	Difference
Max Drawdown Largest peak-to-trough decline	-75.11%	-63.80%	-11.31%
Max Drawdown (1Y) Largest decline over 1 year	-75.11%	-34.93%	-40.18%
Max Drawdown (3Y) Largest decline over 3 years	-75.11%	—	—
Current Drawdown Current decline from peak	-75.11%	-13.50%	-61.61%
Average Drawdown Average peak-to-trough decline	-45.58%	-15.59%	-29.99%
Ulcer Index Depth and duration of drawdowns from previous peaks	39.45%	10.90%	+28.55%

Volatility

BABX vs. TSMX - Volatility Comparison

The current volatility for GraniteShares 2x Long BABA Daily ETF (BABX) is 15.89%, while Direxion Daily TSM Bull 2X Shares (TSMX) has a volatility of 33.01%. This indicates that BABX experiences smaller price fluctuations and is considered to be less risky than TSMX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	BABX	TSMX	Difference
Volatility (1M) Calculated over the trailing 1-month period	15.89%	33.01%	-17.12%
Volatility (6M) Calculated over the trailing 6-month period	58.39%	60.15%	-1.76%
Volatility (1Y) Calculated over the trailing 1-year period	87.73%	76.69%	+11.04%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	82.85%	82.69%	+0.16%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	82.85%	82.69%	+0.16%

BABX vs. TSMX - Expense Ratio Comparison

BABX has a 1.15% expense ratio, which is higher than TSMX's 1.05% expense ratio.

Dividends

BABX vs. TSMX - Dividend Comparison

BABX has not paid dividends to shareholders, while TSMX's dividend yield for the trailing twelve months is around 4.58%.

Position	TTM	2025	2024
BABX GraniteShares 2x Long BABA Daily ETF	0.00%	0.00%	0.00%
TSMX Direxion Daily TSM Bull 2X Shares	4.58%	8.01%	0.53%

Frequently Asked Questions

Can I hold both BABX and TSMX in my portfolio?

BABX and TSMX have a correlation of 0.33, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, BABX or TSMX?

TSMX has higher volatility (33.01%) compared to BABX (15.89%). In terms of maximum drawdown, BABX dropped -75.11% vs TSMX's -63.80%.

Which ETF is better, BABX or TSMX?

On 1-year performance, TSMX leads with 240.03% vs -36.03% for BABX. On fees, TSMX is cheaper at 1.05% per year. On volatility, BABX has been the lower-risk option at 15.89%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, BABX or TSMX?

Over the 1-year period, TSMX has performed better with a 240.03% return vs -36.03%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, BABX or TSMX?

TSMX is cheaper with a 1.05% expense ratio, compared with 1.15% for BABX.

Which ETF pays a higher dividend yield, BABX or TSMX?

TSMX has the higher dividend yield at 4.58%, compared with 0.00% for BABX.

What is the main difference between BABX and TSMX?

They also come from different issuers: GraniteShares and Direxion. Their fees differ too: 1.15% for BABX and 1.05% for TSMX.

Which has better risk-adjusted returns?

TSMX currently has the higher Sharpe Ratio (3.15 vs -0.41), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.