TQQQ vs. TSM

Last updated Jun 9, 2026

TQQQ (ProShares UltraPro QQQ) is Leveraged Equities fund tracking the NASDAQ-100 Index (300%), while TSM (Taiwan Semiconductor Manufacturing Company Limited) is a stock. Over the past 10 years, TQQQ returned 43.95%/yr vs 35.71%/yr for TSM. A 0.63 correlation means they provide meaningful diversification when combined.

Performance

TQQQ vs. TSM - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in ProShares UltraPro QQQ (TQQQ) 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, TQQQ achieves a 44.91% return, which is significantly higher than TSM's 40.84% return. Over the past 10 years, TQQQ has outperformed TSM with an annualized return of 43.95%, while TSM has yielded a comparatively lower 35.71% annualized return.

TQQQ

• 1D: 4.41%
• 1M: -0.01%
• YTD: 44.91%
• 6M: 37.12%
• 1Y: 106.99%
• 3Y*: 62.78%
• 5Y*: 24.89%
• 10Y*: 43.95%

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)

TQQQ vs. TSM - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
TQQQ ProShares UltraPro QQQ	44.91%	34.35%	58.27%	198.04%	-79.09%	82.98%	110.05%	133.84%	-19.79%	118.06%
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 TQQQ and TSM is 0.64, 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	0.64
Correlation (3Y) Calculated over the trailing 3-year period	0.68
Correlation (5Y) Calculated over the trailing 5-year period	0.68
Correlation (10Y) Calculated over the trailing 10-year period	0.66
Correlation (All Time) Calculated using the full available price history since Feb 12, 2010	0.63

The correlation between TQQQ and TSM has been stable across timeframes, ranging from 0.63 to 0.68 - a consistent structural relationship.

Return for Risk

TQQQ vs. TSM — Risk / Return Rank

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

TQQQ

TQQQ Risk / Return Rank: 63
TQQQ Sharpe Ratio Rank: 74
TQQQ Sortino Ratio Rank: 57
TQQQ Omega Ratio Rank: 60
TQQQ Calmar Ratio Rank: 64
TQQQ Martin Ratio Rank: 59

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.

TQQQ vs. TSM - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for ProShares UltraPro QQQ (TQQQ) 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.

	TQQQ	TSM	Difference
Sharpe ratio: Return per unit of total volatility	2.16	3.06	-0.90
Sortino ratio: Return per unit of downside risk	2.45	3.62	-1.16
Omega ratio: Gain probability vs. loss probability	1.33	1.44	-0.11
Calmar ratio: Return relative to maximum drawdown	2.91	6.13	-3.22
Martin ratio: Return relative to average drawdown	9.45	21.94	-12.49
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

TQQQ vs. TSM - Sharpe Ratio Comparison

The current TQQQ Sharpe Ratio is 2.16, which is comparable to the TSM Sharpe Ratio of 3.06. The chart below compares the historical Sharpe Ratios of TQQQ 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

	TQQQ	TSM	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.16	3.06	-0.90
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.37	0.85	-0.48
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.67	1.05	-0.38
Sharpe Ratio (All Time) Calculated using the full available price history	0.72	0.37	+0.35

Drawdowns

TQQQ vs. TSM - Drawdown Comparison

The maximum TQQQ drawdown since its inception was -81.66%, smaller than the maximum TSM drawdown of -89.08%. Use the drawdown chart below to compare losses from any high point for TQQQ and TSM.

Drawdown Indicators

	TQQQ	TSM	Difference
Max Drawdown Largest peak-to-trough decline	-81.66%	-89.08%	+7.42%
Max Drawdown (1Y) Largest decline over 1 year	-36.97%	-18.14%	-18.83%
Max Drawdown (3Y) Largest decline over 3 years	-58.04%	-36.82%	-21.22%
Max Drawdown (5Y) Largest decline over 5 years	-81.66%	-56.47%	-25.19%
Max Drawdown (10Y) Largest decline over 10 years	-81.66%	-56.47%	-25.19%
Current Drawdown Current decline from peak	-12.55%	-4.45%	-8.10%
Average Drawdown Average peak-to-trough decline	-18.52%	-42.87%	+24.35%
Ulcer Index Depth and duration of drawdowns from previous peaks	11.36%	5.06%	+6.30%

Volatility

TQQQ vs. TSM - Volatility Comparison

ProShares UltraPro QQQ (TQQQ) has a higher volatility of 20.84% compared to Taiwan Semiconductor Manufacturing Company Limited (TSM) at 12.47%. This indicates that TQQQ's price experiences larger fluctuations and is considered to be riskier than TSM based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	TQQQ	TSM	Difference
Volatility (1M) Calculated over the trailing 1-month period	20.84%	12.47%	+8.37%
Volatility (6M) Calculated over the trailing 6-month period	39.54%	28.23%	+11.31%
Volatility (1Y) Calculated over the trailing 1-year period	49.94%	36.40%	+13.54%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	66.84%	37.40%	+29.44%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	66.15%	34.20%	+31.95%

Dividends

TQQQ vs. TSM - Dividend Comparison

TQQQ's dividend yield for the trailing twelve months is around 0.41%, less than TSM's 0.78% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
TQQQ ProShares UltraPro QQQ	0.41%	0.65%	1.27%	1.26%	0.57%	0.00%	0.00%	0.06%	0.11%	0.00%	0.00%	0.01%
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 TQQQ and TSM in my portfolio?

TQQQ 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, TQQQ or TSM?

TQQQ has higher volatility (20.84%) compared to TSM (12.47%). In terms of maximum drawdown, TQQQ dropped -81.66% vs TSM's -89.08%.

Which has better risk-adjusted returns?

TSM currently has the higher Sharpe Ratio (3.06 vs 2.16), 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.