TSEM vs. SOXQ

Last updated Jun 4, 2026

TSEM (Tower Semiconductor Ltd) is a stock, while SOXQ (Invesco PHLX Semiconductor ETF) is Semiconductors fund tracking the PHLX Semiconductor Sector Index. Over the past 3 years, TSEM returned 91.15%/yr vs 59.40%/yr for SOXQ. A 0.56 correlation means they provide meaningful diversification when combined.

Performance

TSEM vs. SOXQ - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Tower Semiconductor Ltd (TSEM) and Invesco PHLX Semiconductor ETF (SOXQ). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, TSEM achieves a 128.16% return, which is significantly higher than SOXQ's 96.72% return.

TSEM

• 1D: -2.48%
• 1M: 24.57%
• YTD: 128.16%
• 6M: 130.94%
• 1Y: 561.18%
• 3Y*: 91.15%
• 5Y*: 58.06%
• 10Y*: 35.28%

SOXQ

• 1D: 1.42%
• 1M: 32.12%
• YTD: 96.72%
• 6M: 91.61%
• 1Y: 181.76%
• 3Y*: 59.40%
• 5Y*: —
• 10Y*: —

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

TSEM vs. SOXQ - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021
TSEM Tower Semiconductor Ltd	128.16%	127.96%	68.77%	-29.35%	8.87%	43.87%
SOXQ Invesco PHLX Semiconductor ETF	96.72%	43.11%	20.16%	66.74%	-35.59%	24.82%

Correlation

The correlation between TSEM and SOXQ is 0.62, 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	0.62
Correlation (3Y) Calculated over the trailing 3-year period	0.56
Correlation (All Time) Calculated using the full available price history since Jun 14, 2021	0.56

The correlation between TSEM and SOXQ has been stable across timeframes, ranging from 0.56 to 0.62 - a consistent structural relationship.

Return for Risk

TSEM vs. SOXQ — Risk / Return Rank

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

TSEM

TSEM Risk / Return Rank: 99
TSEM Sharpe Ratio Rank: 100
TSEM Sortino Ratio Rank: 99
TSEM Omega Ratio Rank: 98
TSEM Calmar Ratio Rank: 99
TSEM Martin Ratio Rank: 100

SOXQ

SOXQ Risk / Return Rank: 96
SOXQ Sharpe Ratio Rank: 98
SOXQ Sortino Ratio Rank: 95
SOXQ Omega Ratio Rank: 95
SOXQ Calmar Ratio Rank: 97
SOXQ Martin Ratio Rank: 97

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.

TSEM vs. SOXQ - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Tower Semiconductor Ltd (TSEM) and Invesco PHLX Semiconductor ETF (SOXQ). 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.

	TSEM	SOXQ	Difference
Sharpe ratio Return per unit of total volatility	8.44	5.43	+3.01
Sortino ratio Return per unit of downside risk	6.00	5.22	+0.78
Omega ratio Gain probability vs. loss probability	1.77	1.72	+0.04
Calmar ratio Return relative to maximum drawdown	22.61	11.73	+10.88
Martin ratio Return relative to average drawdown	83.13	45.01	+38.12
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

TSEM vs. SOXQ - Sharpe Ratio Comparison

The current TSEM Sharpe Ratio is 8.44, which is higher than the SOXQ Sharpe Ratio of 5.43. The chart below compares the historical Sharpe Ratios of TSEM and SOXQ, 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

	TSEM	SOXQ	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	8.44	5.43	+3.01
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	1.25	—	—
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.82	—	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.03	0.98	-0.96

Drawdowns

TSEM vs. SOXQ - Drawdown Comparison

The maximum TSEM drawdown since its inception was -99.75%, which is greater than SOXQ's maximum drawdown of -46.01%. Use the drawdown chart below to compare losses from any high point for TSEM and SOXQ.

Drawdown Indicators

	TSEM	SOXQ	Difference
Max Drawdown Largest peak-to-trough decline	-99.75%	-46.01%	-53.74%
Max Drawdown (1Y) Largest decline over 1 year	-25.04%	-15.59%	-9.45%
Max Drawdown (3Y) Largest decline over 3 years	-46.78%	-39.36%	-7.42%
Max Drawdown (5Y) Largest decline over 5 years	-55.39%	—	—
Max Drawdown (10Y) Largest decline over 10 years	-62.28%	—	—
Current Drawdown Current decline from peak	-55.21%	0.00%	-55.21%
Average Drawdown Average peak-to-trough decline	-85.42%	-12.96%	-72.46%
Ulcer Index Depth and duration of drawdowns from previous peaks	6.80%	4.06%	+2.74%

Volatility

TSEM vs. SOXQ - Volatility Comparison

Tower Semiconductor Ltd (TSEM) has a higher volatility of 29.90% compared to Invesco PHLX Semiconductor ETF (SOXQ) at 13.44%. This indicates that TSEM's price experiences larger fluctuations and is considered to be riskier than SOXQ based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	TSEM	SOXQ	Difference
Volatility (1M) Calculated over the trailing 1-month period	29.90%	13.44%	+16.46%
Volatility (6M) Calculated over the trailing 6-month period	53.71%	26.70%	+27.01%
Volatility (1Y) Calculated over the trailing 1-year period	67.10%	33.78%	+33.32%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	46.78%	36.38%	+10.40%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	43.33%	36.38%	+6.95%

Dividends

TSEM vs. SOXQ - Dividend Comparison

TSEM has not paid dividends to shareholders, while SOXQ's dividend yield for the trailing twelve months is around 0.26%.

Position	TTM	2025	2024	2023	2022	2021
SOXQ Invesco PHLX Semiconductor ETF	0.26%	0.50%	0.68%	0.87%	1.36%	0.72%
TSEM Tower Semiconductor Ltd	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both TSEM and SOXQ in my portfolio?

TSEM and SOXQ have a correlation of 0.62, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, TSEM or SOXQ?

TSEM has higher volatility (29.90%) compared to SOXQ (13.44%). In terms of maximum drawdown, TSEM dropped -99.75% vs SOXQ's -46.01%.

Which has better risk-adjusted returns?

TSEM currently has the higher Sharpe Ratio (8.44 vs 5.43), 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.