TSM vs. EDD

Last updated Aug 1, 2026

TSM (Taiwan Semiconductor Manufacturing Company Limited) is a stock, while EDD (Morgan Stanley Emerging Markets Domestic Fund) is Emerging Markets Bonds fund managed by Morgan Stanley. Over the past 10 years, TSM returned 33.46%/yr vs 5.50%/yr for EDD. Their 0.32 correlation means their historical movements had little consistent relationship.

Performance

TSM vs. EDD - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Taiwan Semiconductor Manufacturing Company Limited (TSM) and Morgan Stanley Emerging Markets Domestic Fund (EDD). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, TSM achieves a 33.71% return, which is significantly higher than EDD's 14.80% return. Over the past 10 years, TSM has outperformed EDD with an annualized return of 33.46%, while EDD has yielded a comparatively lower 5.50% annualized return.

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%

EDD

• 1D: -0.17%
• 1M: 0.69%
• 6M: 6.55%
• YTD: 14.80%
• 1Y: 27.62%
• 3Y*: 18.63%
• 5Y*: 8.18%
• 10Y*: 5.50%
• ALL TIME*: 2.96%

*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)
EDD Morgan Stanley Emerging Markets Domestic Fund	$2.10M	$3.03M	$2.42M
TSM Taiwan Semiconductor Manufacturing Company Limited	$6.03B	$6.30B	$6.05B

TSM vs. EDD - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
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%
EDD Morgan Stanley Emerging Markets Domestic Fund	14.80%	32.46%	8.64%	14.09%	-14.15%	-7.03%	-2.84%	25.45%	-14.09%	16.34%

Correlation

The correlation between TSM and EDD is 0.28, which is low. Their historical price movements had little consistent relationship.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	0.28
Correlation (3Y) Balances recent behavior with more history.	0.25
Correlation (5Y) Shows whether the relationship held over a longer period.	0.31
Correlation (10Y) Provides a long-term view across more market conditions.	0.31
Correlation (All Time) Calculated using the full available price history since Apr 24, 2007	0.32

Return for Risk

TSM vs. EDD — Risk / Return Rank

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

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

EDD

EDD Risk / Return Rank: 57
EDD Sharpe Ratio Rank: 73
EDD Sortino Ratio Rank: 70
EDD Omega Ratio Rank: 69
EDD Calmar Ratio Rank: 38
EDD Martin Ratio Rank: 35

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.

TSM vs. EDD - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Taiwan Semiconductor Manufacturing Company Limited (TSM) and Morgan Stanley Emerging Markets Domestic Fund (EDD). 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.

	TSM	EDD	Difference
Sharpe ratio: Return per unit of total volatility	1.71	1.66	+0.05
Sortino ratio: Return per unit of downside risk	2.33	2.32	+0.01
Omega ratio: Gain probability vs. loss probability	1.28	1.29	-0.02
Calmar ratio: Return relative to maximum drawdown	3.23	1.57	+1.65
Martin ratio: Return relative to average drawdown	10.80	5.03	+5.76

TSM vs. EDD - Sharpe Ratio Comparison

The current TSM Sharpe Ratio is 1.71, which is comparable to the EDD Sharpe Ratio of 1.66. The chart below compares the historical Sharpe Ratios of TSM and EDD, 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

TSM vs. EDD - Drawdown Comparison

The maximum TSM drawdown since its inception was -89.08%, which is greater than EDD's maximum drawdown of -59.38%. Use the drawdown chart below to compare losses from any high point for TSM and EDD.

Drawdown Indicators

	TSM	EDD	Difference
Max Drawdown Largest peak-to-trough decline	-89.08%	-59.38%	-29.70%
Max Drawdown (1Y) Largest decline over 1 year	-21.55%	-17.67%	-3.88%
Max Drawdown (3Y) Largest decline over 3 years	-36.82%	-17.67%	-19.15%
Max Drawdown (5Y) Largest decline over 5 years	-56.47%	-32.04%	-24.43%
Max Drawdown (10Y) Largest decline over 10 years	-56.47%	-42.70%	-13.77%
Current Drawdown Current decline from peak	-15.35%	-2.84%	-12.51%
Average Drawdown Average peak-to-trough decline	-42.69%	-24.06%	-18.63%
Ulcer Index Depth and duration of drawdowns from previous peaks	6.43%	5.50%	+0.93%

Volatility

TSM vs. EDD - Volatility Comparison

Taiwan Semiconductor Manufacturing Company Limited (TSM) has a higher volatility of 13.76% compared to Morgan Stanley Emerging Markets Domestic Fund (EDD) at 4.62%. This indicates that TSM's price experiences larger fluctuations and is considered to be riskier than EDD based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	TSM	EDD	Difference
Volatility (1M) Calculated over the trailing 1-month period	13.76%	4.62%	+9.14%
Volatility (6M) Calculated over the trailing 6-month period	33.07%	13.86%	+19.21%
Volatility (1Y) Calculated over the trailing 1-year period	40.75%	16.72%	+24.03%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	38.35%	15.57%	+22.78%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	34.75%	17.66%	+17.09%

Dividends

TSM vs. EDD - Dividend Comparison

TSM's dividend yield for the trailing twelve months is around 0.87%, less than EDD's 10.82% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
EDD Morgan Stanley Emerging Markets Domestic Fund	10.82%	9.76%	11.45%	7.30%	6.82%	6.93%	6.92%	8.15%	9.90%	8.18%	10.32%	12.65%
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 TSM and EDD in my portfolio?

TSM and EDD have a correlation of 0.28, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, TSM or EDD?

TSM has higher volatility (13.76%) compared to EDD (4.62%). In terms of maximum drawdown, TSM dropped -89.08% vs EDD's -59.38%.

Which has better risk-adjusted returns?

TSM currently has the higher Sharpe Ratio (1.71 vs 1.66), 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.