MGK vs. TSM

Last updated Aug 1, 2026

MGK (Vanguard Mega Cap Growth ETF) is Large Cap Growth Equities fund tracking the CRSP US Mega Cap Growth Index, while TSM (Taiwan Semiconductor Manufacturing Company Limited) is a stock. Over the past 10 years, MGK returned 18.26%/yr vs 33.46%/yr for TSM. Their 0.62 correlation means they have sometimes moved together and sometimes differently.

Performance

MGK vs. TSM - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Mega Cap Growth ETF (MGK) 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, MGK achieves a 4.77% return, which is significantly lower than TSM's 33.71% return. Over the past 10 years, MGK has underperformed TSM with an annualized return of 18.26%, while TSM has yielded a comparatively higher 33.46% annualized return.

MGK

• 1D: 1.11%
• 1M: -1.80%
• 6M: 6.56%
• YTD: 4.77%
• 1Y: 13.84%
• 3Y*: 21.79%
• 5Y*: 13.06%
• 10Y*: 18.26%
• ALL TIME*: 13.36%

TSM

• 1D: 0.23%
• 1M: -9.00%
• 6M: 22.92%
• YTD: 33.71%
• 1Y: 69.13%
• 3Y*: 62.43%
• 5Y*: 30.32%
• 10Y*: 33.46%
• ALL TIME*: 16.20%

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

Liquidity Comparison

Position	Avg. Volume Value (2W)	Avg. Volume Value (1M)	Avg. Volume Value (3M)
MGK Vanguard Mega Cap Growth ETF	$119.42M	$123.75M	$142.35M
TSM Taiwan Semiconductor Manufacturing Company Limited	$6.03B	$6.30B	$6.05B

MGK vs. TSM - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
MGK Vanguard Mega Cap Growth ETF	4.77%	20.67%	32.94%	51.67%	-33.59%	28.58%	41.01%	37.38%	-2.91%	29.49%
TSM Taiwan Semiconductor Manufacturing Company Limited	33.71%	55.91%	92.58%	42.33%	-36.75%	12.09%	92.67%	64.85%	-3.50%	41.46%

Correlation

The correlation between MGK and TSM is 0.64, which is moderate. They have sometimes moved together and sometimes differently, sharing some price drivers without tracking each other closely.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	0.64
Correlation (3Y) Balances recent behavior with more history.	0.65
Correlation (5Y) Shows whether the relationship held over a longer period.	0.66
Correlation (10Y) Provides a long-term view across more market conditions.	0.63
Correlation (All Time) Calculated using the full available price history since Dec 27, 2007	0.62

The correlation between MGK and TSM has been stable across timeframes, ranging from 0.62 to 0.66 - a consistent structural relationship.

Return for Risk

MGK vs. TSM — Risk / Return Rank

Compare historical risk-adjusted metric ranks over the past 12 months.

MGK

MGK Risk / Return Rank: 29
MGK Sharpe Ratio Rank: 31
MGK Sortino Ratio Rank: 30
MGK Omega Ratio Rank: 29
MGK Calmar Ratio Rank: 26
MGK Martin Ratio Rank: 30

TSM

TSM Risk / Return Rank: 87
TSM Sharpe Ratio Rank: 88
TSM Sortino Ratio Rank: 85
TSM Omega Ratio Rank: 82
TSM Calmar Ratio Rank: 88
TSM Martin Ratio Rank: 92

The rank (0–100) uses a weighted average of the Sharpe, Sortino, Omega, Calmar, and Martin percentile ranks for the trailing 12 months. Higher means stronger historical risk-adjusted performance within the peer group.

MGK vs. TSM - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Mega Cap Growth ETF (MGK) 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.

	MGK	TSM	Difference
Sharpe ratio: Return per unit of total volatility	0.76	1.71	-0.94
Sortino ratio: Return per unit of downside risk	1.16	2.33	-1.17
Omega ratio: Gain probability vs. loss probability	1.14	1.28	-0.14
Calmar ratio: Return relative to maximum drawdown	0.83	3.23	-2.40
Martin ratio: Return relative to average drawdown	2.57	10.80	-8.23

MGK vs. TSM - Sharpe Ratio Comparison

The current MGK Sharpe Ratio is 0.76, which is lower than the TSM Sharpe Ratio of 1.71. The chart below compares the historical Sharpe Ratios of MGK 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.

Drawdowns

MGK vs. TSM - Drawdown Comparison

The maximum MGK drawdown since its inception was -48.43%, smaller than the maximum TSM drawdown of -89.08%. Use the drawdown chart below to compare losses from any high point for MGK and TSM.

Drawdown Indicators

	MGK	TSM	Difference
Max Drawdown Largest peak-to-trough decline	-48.43%	-89.08%	+40.65%
Max Drawdown (1Y) Largest decline over 1 year	-16.85%	-21.55%	+4.70%
Max Drawdown (3Y) Largest decline over 3 years	-23.36%	-36.82%	+13.46%
Max Drawdown (5Y) Largest decline over 5 years	-36.01%	-56.47%	+20.46%
Max Drawdown (10Y) Largest decline over 10 years	-36.01%	-56.47%	+20.46%
Current Drawdown Current decline from peak	-6.13%	-15.35%	+9.22%
Average Drawdown Average peak-to-trough decline	-7.57%	-42.69%	+35.12%
Ulcer Index Depth and duration of drawdowns from previous peaks	5.40%	6.43%	-1.03%

Volatility

MGK vs. TSM - Volatility Comparison

The current volatility for Vanguard Mega Cap Growth ETF (MGK) is 5.90%, while Taiwan Semiconductor Manufacturing Company Limited (TSM) has a volatility of 13.76%. This indicates that MGK 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

	MGK	TSM	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.90%	13.76%	-7.86%
Volatility (6M) Calculated over the trailing 6-month period	14.66%	33.07%	-18.41%
Volatility (1Y) Calculated over the trailing 1-year period	18.25%	40.75%	-22.50%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	22.93%	38.35%	-15.42%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	22.02%	34.75%	-12.73%

Dividends

MGK vs. TSM - Dividend Comparison

MGK's dividend yield for the trailing twelve months is around 0.34%, less than TSM's 0.87% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
MGK Vanguard Mega Cap Growth ETF	0.34%	0.35%	0.43%	0.50%	0.70%	0.41%	0.65%	0.85%	1.12%	1.23%	1.53%	1.43%
TSM Taiwan Semiconductor Manufacturing Company Limited	0.87%	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 MGK and TSM in my portfolio?

MGK and TSM have a correlation of 0.64, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, MGK or TSM?

TSM has higher volatility (13.76%) compared to MGK (5.90%). In terms of maximum drawdown, MGK dropped -48.43% vs TSM's -89.08%.

Which has better risk-adjusted returns?

TSM currently has the higher Sharpe Ratio (1.71 vs 0.76), 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.