TMHC vs. SPY

Last updated Jul 14, 2026

TMHC (Taylor Morrison Home Corporation) is a stock, while SPY (State Street SPDR S&P 500 ETF) is S&P 500 fund tracking the S&P 500 Index. Over the past 10 years, TMHC returned 16.06%/yr vs 15.08%/yr for SPY. At a 0.49 correlation, their price movements are largely independent.

Performance

TMHC vs. SPY - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Taylor Morrison Home Corporation (TMHC) and State Street SPDR S&P 500 ETF (SPY). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, TMHC achieves a 22.08% return, which is significantly higher than SPY's 10.45% return. Over the past 10 years, TMHC has outperformed SPY with an annualized return of 16.06%, while SPY has yielded a comparatively lower 15.08% annualized return.

TMHC

• 1D: 0.03%
• 1M: -0.04%
• 6M: 10.72%
• YTD: 22.08%
• 1Y: 11.03%
• 3Y*: 11.80%
• 5Y*: 24.57%
• 10Y*: 16.06%

SPY

• 1D: -0.77%
• 1M: 1.26%
• 6M: 8.34%
• YTD: 10.45%
• 1Y: 21.46%
• 3Y*: 20.07%
• 5Y*: 12.94%
• 10Y*: 15.08%

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

TMHC vs. SPY - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
TMHC Taylor Morrison Home Corporation	22.08%	-3.82%	14.73%	75.78%	-13.19%	36.30%	17.34%	37.48%	-35.02%	27.05%
SPY State Street SPDR S&P 500 ETF	10.45%	17.72%	24.89%	26.18%	-18.18%	28.73%	18.33%	31.22%	-4.57%	21.71%

Correlation

The correlation between TMHC and SPY is 0.29, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.29
Correlation (3Y) Calculated over the trailing 3-year period	0.45
Correlation (5Y) Calculated over the trailing 5-year period	0.54
Correlation (10Y) Calculated over the trailing 10-year period	0.50
Correlation (All Time) Calculated using the full available price history since Apr 10, 2013	0.49

Over the past year, the correlation between TMHC and SPY has dropped to 0.29 - well below their long-term average of 0.49, suggesting their price drivers have been diverging.

Return for Risk

TMHC vs. SPY — Risk / Return Rank

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

TMHC

TMHC Risk / Return Rank: 56
TMHC Sharpe Ratio Rank: 56
TMHC Sortino Ratio Rank: 57
TMHC Omega Ratio Rank: 54
TMHC Calmar Ratio Rank: 57
TMHC Martin Ratio Rank: 56

SPY

SPY Risk / Return Rank: 66
SPY Sharpe Ratio Rank: 66
SPY Sortino Ratio Rank: 64
SPY Omega Ratio Rank: 65
SPY Calmar Ratio Rank: 61
SPY Martin Ratio Rank: 72

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.

TMHC vs. SPY - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Taylor Morrison Home Corporation (TMHC) and State Street SPDR S&P 500 ETF (SPY). 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.

	TMHC	SPY	Difference
Sharpe ratio: Return per unit of total volatility	0.29	1.71	-1.42
Sortino ratio: Return per unit of downside risk	0.89	2.37	-1.48
Omega ratio: Gain probability vs. loss probability	1.10	1.31	-0.21
Calmar ratio: Return relative to maximum drawdown	0.47	2.43	-1.96
Martin ratio: Return relative to average drawdown	0.87	10.57	-9.71

TMHC vs. SPY - Sharpe Ratio Comparison

The current TMHC Sharpe Ratio is 0.29, which is lower than the SPY Sharpe Ratio of 1.71. The chart below compares the historical Sharpe Ratios of TMHC and SPY, 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

TMHC vs. SPY - Drawdown Comparison

The maximum TMHC drawdown since its inception was -75.18%, which is greater than SPY's maximum drawdown of -55.19%. Use the drawdown chart below to compare losses from any high point for TMHC and SPY.

Drawdown Indicators

	TMHC	SPY	Difference
Max Drawdown Largest peak-to-trough decline	-75.18%	-55.19%	-19.99%
Max Drawdown (1Y) Largest decline over 1 year	-23.80%	-8.88%	-14.92%
Max Drawdown (3Y) Largest decline over 3 years	-27.90%	-18.76%	-9.14%
Max Drawdown (5Y) Largest decline over 5 years	-40.84%	-24.50%	-16.34%
Max Drawdown (10Y) Largest decline over 10 years	-75.18%	-33.72%	-41.46%
Current Drawdown Current decline from peak	-3.92%	-1.12%	-2.80%
Average Drawdown Average peak-to-trough decline	-20.17%	-9.02%	-11.15%
Ulcer Index Depth and duration of drawdowns from previous peaks	12.77%	2.03%	+10.74%

Volatility

TMHC vs. SPY - Volatility Comparison

The current volatility for Taylor Morrison Home Corporation (TMHC) is 0.85%, while State Street SPDR S&P 500 ETF (SPY) has a volatility of 4.26%. This indicates that TMHC experiences smaller price fluctuations and is considered to be less risky than SPY based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	TMHC	SPY	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.85%	4.26%	-3.41%
Volatility (6M) Calculated over the trailing 6-month period	28.94%	10.01%	+18.93%
Volatility (1Y) Calculated over the trailing 1-year period	38.01%	12.60%	+25.41%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	37.60%	17.17%	+20.43%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	44.63%	17.93%	+26.70%

Dividends

TMHC vs. SPY - Dividend Comparison

TMHC has not paid dividends to shareholders, while SPY's dividend yield for the trailing twelve months is around 1.00%.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
SPY State Street SPDR S&P 500 ETF	1.00%	1.07%	1.21%	1.40%	1.65%	1.20%	1.52%	1.75%	2.04%	1.80%	2.03%	2.06%
TMHC Taylor Morrison Home Corporation	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both TMHC and SPY in my portfolio?

TMHC and SPY have a correlation of 0.29, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, TMHC or SPY?

SPY has higher volatility (4.26%) compared to TMHC (0.85%). In terms of maximum drawdown, TMHC dropped -75.18% vs SPY's -55.19%.

Which has better risk-adjusted returns?

SPY currently has the higher Sharpe Ratio (1.71 vs 0.29), 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.