PALU vs. TSMG

Last updated Jun 30, 2026

PALU (Direxion Daily PANW Bull 2X Shares) and TSMG (Leverage Shares 2X Long TSM Daily ETF) are both Leveraged Equities funds. Both are actively managed. Over the past year, PALU returned 109.65% vs 214.09% for TSMG. At a 0.16 correlation, their price movements are largely independent. PALU charges 1.08%/yr vs 0.75%/yr for TSMG.

Performance

PALU vs. TSMG - Performance Comparison

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

Returns By Period

In the year-to-date period, PALU achieves a 176.45% return, which is significantly higher than TSMG's 95.13% return.

PALU

• 1D: 18.74%
• 1M: 34.36%
• YTD: 176.45%
• 6M: 167.92%
• 1Y: 109.65%
• 3Y*: —
• 5Y*: —
• 10Y*: —

TSMG

• 1D: 10.60%
• 1M: 13.80%
• YTD: 95.13%
• 6M: 99.24%
• 1Y: 214.09%
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

PALU vs. TSMG - Yearly Performance Comparison

	2026 (YTD)	2025
PALU Direxion Daily PANW Bull 2X Shares	176.45%	-17.65%
TSMG Leverage Shares 2X Long TSM Daily ETF	95.13%	135.68%

Correlation

The correlation between PALU and TSMG is 0.10, meaning there is essentially no relationship between their price movements. Each responds to its own set of market drivers, making them strong candidates for combining in a diversified portfolio.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.10
Correlation (All Time) Calculated using the full available price history since Mar 26, 2025	0.16

Return for Risk

PALU vs. TSMG — Risk / Return Rank

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

PALU

PALU Risk / Return Rank: 40
PALU Sharpe Ratio Rank: 43
PALU Sortino Ratio Rank: 43
PALU Omega Ratio Rank: 45
PALU Calmar Ratio Rank: 39
PALU Martin Ratio Rank: 28

TSMG

TSMG Risk / Return Rank: 86
TSMG Sharpe Ratio Rank: 93
TSMG Sortino Ratio Rank: 78
TSMG Omega Ratio Rank: 72
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.

PALU vs. TSMG - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Direxion Daily PANW Bull 2X Shares (PALU) 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.

	PALU	TSMG	Difference
Sharpe ratio: Return per unit of total volatility	1.37	2.80	-1.44
Sortino ratio: Return per unit of downside risk	1.96	2.98	-1.01
Omega ratio: Gain probability vs. loss probability	1.26	1.36	-0.11
Calmar ratio: Return relative to maximum drawdown	1.77	6.11	-4.33
Martin ratio: Return relative to average drawdown	3.54	19.32	-15.78

PALU vs. TSMG - Sharpe Ratio Comparison

The current PALU Sharpe Ratio is 1.37, which is lower than the TSMG Sharpe Ratio of 2.80. The chart below compares the historical Sharpe Ratios of PALU and TSMG, 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

PALU vs. TSMG - Drawdown Comparison

The maximum PALU drawdown since its inception was -62.18%, roughly equal to the maximum TSMG drawdown of -63.67%. Use the drawdown chart below to compare losses from any high point for PALU and TSMG.

Drawdown Indicators

	PALU	TSMG	Difference
Max Drawdown Largest peak-to-trough decline	-62.18%	-63.67%	+1.49%
Max Drawdown (1Y) Largest decline over 1 year	-62.18%	-35.29%	-26.89%
Current Drawdown Current decline from peak	0.00%	-6.42%	+6.42%
Average Drawdown Average peak-to-trough decline	-21.88%	-16.59%	-5.29%
Ulcer Index Depth and duration of drawdowns from previous peaks	31.11%	11.13%	+19.98%

Volatility

PALU vs. TSMG - Volatility Comparison

Direxion Daily PANW Bull 2X Shares (PALU) and Leverage Shares 2X Long TSM Daily ETF (TSMG) have volatilities of 35.14% and 34.13%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	PALU	TSMG	Difference
Volatility (1M) Calculated over the trailing 1-month period	35.14%	34.13%	+1.01%
Volatility (6M) Calculated over the trailing 6-month period	67.42%	61.51%	+5.91%
Volatility (1Y) Calculated over the trailing 1-year period	80.92%	77.10%	+3.82%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	82.35%	83.24%	-0.89%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	82.35%	83.24%	-0.89%

PALU vs. TSMG - Expense Ratio Comparison

PALU has a 1.08% expense ratio, which is higher than TSMG's 0.75% expense ratio.

Dividends

PALU vs. TSMG - Dividend Comparison

PALU's dividend yield for the trailing twelve months is around 3.95%, less than TSMG's 5.89% yield.

Position	TTM	2025
PALU Direxion Daily PANW Bull 2X Shares	3.95%	10.50%
TSMG Leverage Shares 2X Long TSM Daily ETF	5.89%	11.48%

Frequently Asked Questions

Can I hold both PALU and TSMG in my portfolio?

PALU and TSMG have a correlation of 0.10, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, PALU or TSMG?

PALU has higher volatility (35.14%) compared to TSMG (34.13%). In terms of maximum drawdown, PALU dropped -62.18% vs TSMG's -63.67%.

Which ETF is better, PALU or TSMG?

On 1-year performance, TSMG leads with 214.09% vs 109.65% for PALU. On fees, TSMG is cheaper at 0.75% per year. On volatility, TSMG has been the lower-risk option at 34.13%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, PALU or TSMG?

Over the 1-year period, TSMG has performed better with a 214.09% return vs 109.65%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, PALU or TSMG?

TSMG is cheaper with a 0.75% expense ratio, compared with 1.08% for PALU.

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

TSMG has the higher dividend yield at 5.89%, compared with 3.95% for PALU.

What is the main difference between PALU and TSMG?

They also come from different issuers: Direxion and Leverage Shares. Their fees differ too: 1.08% for PALU and 0.75% for TSMG.

Which has better risk-adjusted returns?

TSMG currently has the higher Sharpe Ratio (2.80 vs 1.37), 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.