GRID vs. TSM

Last updated Jun 9, 2026

GRID (First Trust NASDAQ Clean Edge Smart Grid Infrastructure Index Fund) is Alternative Energy Equities fund tracking the Nasdaq Clean Edge Smart Grid Infrastructure Index, while TSM (Taiwan Semiconductor Manufacturing Company Limited) is a stock. Over the past 10 years, GRID returned 19.34%/yr vs 35.71%/yr for TSM. A 0.52 correlation means they provide meaningful diversification when combined.

Performance

GRID vs. TSM - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in First Trust NASDAQ Clean Edge Smart Grid Infrastructure Index Fund (GRID) and Taiwan Semiconductor Manufacturing Company Limited (TSM). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, GRID achieves a 23.80% return, which is significantly lower than TSM's 40.84% return. Over the past 10 years, GRID has underperformed TSM with an annualized return of 19.34%, while TSM has yielded a comparatively higher 35.71% annualized return.

GRID

• 1D: 0.94%
• 1M: -4.01%
• YTD: 23.80%
• 6M: 23.19%
• 1Y: 44.25%
• 3Y*: 24.20%
• 5Y*: 16.92%
• 10Y*: 19.34%

TSM

• 1D: 2.80%
• 1M: 3.67%
• YTD: 40.84%
• 6M: 42.15%
• 1Y: 110.53%
• 3Y*: 63.10%
• 5Y*: 31.67%
• 10Y*: 35.71%

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

GRID vs. TSM - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
GRID First Trust NASDAQ Clean Edge Smart Grid Infrastructure Index Fund	23.80%	29.65%	15.18%	21.57%	-13.89%	27.65%	48.84%	42.80%	-22.69%	27.44%
TSM Taiwan Semiconductor Manufacturing Company Limited	40.84%	55.91%	92.58%	42.33%	-36.75%	12.09%	92.67%	64.85%	-3.50%	41.46%

Correlation

The correlation between GRID and TSM is 0.67, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.67
Correlation (3Y) Calculated over the trailing 3-year period	0.63
Correlation (5Y) Calculated over the trailing 5-year period	0.62
Correlation (10Y) Calculated over the trailing 10-year period	0.57
Correlation (All Time) Calculated using the full available price history since Nov 18, 2009	0.52

The correlation between GRID and TSM shifts across timeframes, from 0.52 (all time) to 0.67 (1 year), reflecting how their relationship changes across market environments.

Return for Risk

GRID vs. TSM — Risk / Return Rank

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

GRID

GRID Risk / Return Rank: 76
GRID Sharpe Ratio Rank: 76
GRID Sortino Ratio Rank: 71
GRID Omega Ratio Rank: 72
GRID Calmar Ratio Rank: 80
GRID Martin Ratio Rank: 80

TSM

TSM Risk / Return Rank: 94
TSM Sharpe Ratio Rank: 95
TSM Sortino Ratio Rank: 94
TSM Omega Ratio Rank: 91
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.

GRID vs. TSM - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for First Trust NASDAQ Clean Edge Smart Grid Infrastructure Index Fund (GRID) 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.

	GRID	TSM	Difference
Sharpe ratio: Return per unit of total volatility	2.22	3.06	-0.84
Sortino ratio: Return per unit of downside risk	2.91	3.62	-0.71
Omega ratio: Gain probability vs. loss probability	1.38	1.44	-0.06
Calmar ratio: Return relative to maximum drawdown	3.79	6.13	-2.34
Martin ratio: Return relative to average drawdown	14.15	21.94	-7.79
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

GRID vs. TSM - Sharpe Ratio Comparison

The current GRID Sharpe Ratio is 2.22, which is comparable to the TSM Sharpe Ratio of 3.06. The chart below compares the historical Sharpe Ratios of GRID and TSM, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	GRID	TSM	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.22	3.06	-0.84
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.81	0.85	-0.05
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.85	1.05	-0.20
Sharpe Ratio (All Time) Calculated using the full available price history	0.56	0.37	+0.19

Drawdowns

GRID vs. TSM - Drawdown Comparison

The maximum GRID drawdown since its inception was -40.56%, smaller than the maximum TSM drawdown of -89.08%. Use the drawdown chart below to compare losses from any high point for GRID and TSM.

Drawdown Indicators

	GRID	TSM	Difference
Max Drawdown Largest peak-to-trough decline	-40.56%	-89.08%	+48.52%
Max Drawdown (1Y) Largest decline over 1 year	-11.73%	-18.14%	+6.41%
Max Drawdown (3Y) Largest decline over 3 years	-20.77%	-36.82%	+16.05%
Max Drawdown (5Y) Largest decline over 5 years	-29.64%	-56.47%	+26.83%
Max Drawdown (10Y) Largest decline over 10 years	-40.56%	-56.47%	+15.91%
Current Drawdown Current decline from peak	-5.25%	-4.45%	-0.80%
Average Drawdown Average peak-to-trough decline	-8.43%	-42.87%	+34.44%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.14%	5.06%	-1.92%

Volatility

GRID vs. TSM - Volatility Comparison

The current volatility for First Trust NASDAQ Clean Edge Smart Grid Infrastructure Index Fund (GRID) is 8.65%, while Taiwan Semiconductor Manufacturing Company Limited (TSM) has a volatility of 12.47%. This indicates that GRID 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

	GRID	TSM	Difference
Volatility (1M) Calculated over the trailing 1-month period	8.65%	12.47%	-3.82%
Volatility (6M) Calculated over the trailing 6-month period	16.87%	28.23%	-11.36%
Volatility (1Y) Calculated over the trailing 1-year period	20.03%	36.40%	-16.37%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	21.11%	37.40%	-16.29%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	22.86%	34.20%	-11.34%

Dividends

GRID vs. TSM - Dividend Comparison

GRID's dividend yield for the trailing twelve months is around 0.80%, more than TSM's 0.78% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
GRID First Trust NASDAQ Clean Edge Smart Grid Infrastructure Index Fund	0.80%	1.01%	1.06%	1.23%	1.26%	0.63%	0.68%	1.26%	1.28%	1.07%	1.07%	1.23%
TSM Taiwan Semiconductor Manufacturing Company Limited	0.78%	1.00%	1.18%	1.78%	2.49%	1.57%	1.56%	3.46%	3.64%	2.32%	2.61%	2.54%

Frequently Asked Questions

Can I hold both GRID and TSM in my portfolio?

GRID and TSM have a correlation of 0.67, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, GRID or TSM?

TSM has higher volatility (12.47%) compared to GRID (8.65%). In terms of maximum drawdown, GRID dropped -40.56% vs TSM's -89.08%.

Which has better risk-adjusted returns?

TSM currently has the higher Sharpe Ratio (3.06 vs 2.22), 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.