IGV vs. TSM
IGV (iShares Expanded Tech-Software Sector ETF) is Technology Equities fund tracking the S&P North American Expanded Technology Software Index, while TSM (Taiwan Semiconductor Manufacturing Company Limited) is a stock. Over the past 10 years, IGV returned 15.87%/yr vs 35.80%/yr for TSM. A 0.56 correlation means they provide meaningful diversification when combined.
Performance
IGV vs. TSM - Performance Comparison
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Returns By Period
In the year-to-date period, IGV achieves a -14.18% return, which is significantly lower than TSM's 40.22% return. Over the past 10 years, IGV has underperformed TSM with an annualized return of 15.87%, while TSM has yielded a comparatively higher 35.80% annualized return.
IGV
- 1D
- -0.24%
- 1M
- 2.37%
- YTD
- -14.18%
- 6M
- -16.00%
- 1Y
- -15.27%
- 3Y*
- 10.04%
- 5Y*
- 3.91%
- 10Y*
- 15.87%
TSM
- 1D
- 0.68%
- 1M
- 6.28%
- YTD
- 40.22%
- 6M
- 45.91%
- 1Y
- 98.93%
- 3Y*
- 60.80%
- 5Y*
- 31.30%
- 10Y*
- 35.80%
IGV vs. TSM - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
IGV iShares Expanded Tech-Software Sector ETF | -14.18% | 5.56% | 23.41% | 58.56% | -35.65% | 12.30% | 52.86% | 34.33% | 12.44% | 42.16% |
TSM Taiwan Semiconductor Manufacturing Company Limited | 40.22% | 55.91% | 92.58% | 42.33% | -36.75% | 12.09% | 92.67% | 64.85% | -3.50% | 41.46% |
Correlation
The correlation between IGV and TSM is 0.28, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.28 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.46 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.53 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.53 |
Correlation (All Time) Calculated using the full available price history since Jul 13, 2001 | 0.56 |
Over the past year, the correlation between IGV and TSM has dropped to 0.28 - well below their long-term average of 0.56, suggesting their price drivers have been diverging.
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Return for Risk
IGV vs. TSM — Risk / Return Rank
IGV
TSM
IGV vs. TSM - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares Expanded Tech-Software Sector ETF (IGV) 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.
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.
| IGV | TSM | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -3.26 | ||
| Sortino ratioReturn per unit of downside risk | -3.92 | ||
| Omega ratioGain probability vs. loss probability | 0.93 | 1.40 | -0.47 |
| Calmar ratioReturn relative to maximum drawdown | -0.42 | 5.48 | -5.90 |
| Martin ratioReturn relative to average drawdown | -0.87 | 19.42 | -20.30 |
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Drawdowns
IGV vs. TSM - Drawdown Comparison
The maximum IGV drawdown since its inception was -63.45%, smaller than the maximum TSM drawdown of -89.08%. Use the drawdown chart below to compare losses from any high point for IGV and TSM.
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Drawdown Indicators
| IGV | TSM | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -63.45% | -89.08% | +25.63% |
Max Drawdown (1Y)Largest decline over 1 year | -36.61% | -18.14% | -18.47% |
Max Drawdown (3Y)Largest decline over 3 years | -36.61% | -36.82% | +0.21% |
Max Drawdown (5Y)Largest decline over 5 years | -45.85% | -56.47% | +10.62% |
Max Drawdown (10Y)Largest decline over 10 years | -45.85% | -56.47% | +10.62% |
Current DrawdownCurrent decline from peak | -23.00% | -4.87% | -18.13% |
Average DrawdownAverage peak-to-trough decline | -14.45% | -42.85% | +28.40% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 17.55% | 5.11% | +12.44% |
Volatility
IGV vs. TSM - Volatility Comparison
The current volatility for iShares Expanded Tech-Software Sector ETF (IGV) is 12.57%, while Taiwan Semiconductor Manufacturing Company Limited (TSM) has a volatility of 13.42%. This indicates that IGV 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.
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Volatility by Period
| IGV | TSM | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 12.57% | 13.42% | -0.85% |
Volatility (6M)Calculated over the trailing 6-month period | 24.80% | 28.65% | -3.85% |
Volatility (1Y)Calculated over the trailing 1-year period | 28.06% | 36.69% | -8.63% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 27.92% | 37.46% | -9.54% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 26.39% | 34.23% | -7.84% |
Dividends
IGV vs. TSM - Dividend Comparison
IGV has not paid dividends to shareholders, while TSM's dividend yield for the trailing twelve months is around 0.83%.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
IGV iShares Expanded Tech-Software Sector ETF | 0.00% | 0.00% | 0.00% | 0.01% | 0.01% | 0.00% | 0.35% | 0.02% | 0.16% | 0.09% | 0.82% | 0.22% |
TSM Taiwan Semiconductor Manufacturing Company Limited | 0.83% | 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
IGV and TSM have a correlation of 0.28, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
TSM has higher volatility (13.42%) compared to IGV (12.57%). In terms of maximum drawdown, IGV dropped -63.45% vs TSM's -89.08%.
TSM currently has the higher Sharpe Ratio (2.71 vs -0.55), 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.
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