TSM vs. FRDM

Last updated Jun 13, 2026

TSM (Taiwan Semiconductor Manufacturing Company Limited) is a stock, while FRDM (Freedom 100 Emerging Markets ETF) is Emerging Markets Diversified fund tracking the Life + Liberty Freedom 100 Emerging Markets Index. Over the past 5 years, TSM returned 31.30%/yr vs 18.68%/yr for FRDM. A 0.69 correlation means they provide meaningful diversification when combined.

Performance

TSM vs. FRDM - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Taiwan Semiconductor Manufacturing Company Limited (TSM) and Freedom 100 Emerging Markets ETF (FRDM). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

The year-to-date returns for both stocks are quite close, with TSM having a 40.22% return and FRDM slightly lower at 40.13%.

TSM

• 1D: 0.68%
• 1M: 5.09%
• YTD: 40.22%
• 6M: 45.91%
• 1Y: 103.01%
• 3Y*: 60.80%
• 5Y*: 31.30%
• 10Y*: 35.80%

FRDM

• 1D: 0.49%
• 1M: 9.04%
• YTD: 40.13%
• 6M: 46.37%
• 1Y: 87.32%
• 3Y*: 34.29%
• 5Y*: 18.68%
• 10Y*: —

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

TSM vs. FRDM - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019
TSM Taiwan Semiconductor Manufacturing Company Limited	40.22%	55.91%	92.58%	42.33%	-36.75%	12.09%	92.67%	56.42%
FRDM Freedom 100 Emerging Markets ETF	40.13%	61.27%	1.70%	22.77%	-14.45%	6.13%	16.90%	12.23%

Correlation

The correlation between TSM and FRDM is 0.70, 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	0.70
Correlation (3Y) Calculated over the trailing 3-year period	0.67
Correlation (5Y) Calculated over the trailing 5-year period	0.67
Correlation (All Time) Calculated using the full available price history since May 23, 2019	0.69

The correlation between TSM and FRDM has been stable across timeframes, ranging from 0.67 to 0.70 - a consistent structural relationship.

Return for Risk

TSM vs. FRDM — Risk / Return Rank

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

TSM

TSM Risk / Return Rank: 93
TSM Sharpe Ratio Rank: 94
TSM Sortino Ratio Rank: 92
TSM Omega Ratio Rank: 90
TSM Calmar Ratio Rank: 94
TSM Martin Ratio Rank: 96

FRDM

FRDM Risk / Return Rank: 92
FRDM Sharpe Ratio Rank: 94
FRDM Sortino Ratio Rank: 90
FRDM Omega Ratio Rank: 92
FRDM Calmar Ratio Rank: 91
FRDM Martin Ratio Rank: 91

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.

TSM vs. FRDM - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Taiwan Semiconductor Manufacturing Company Limited (TSM) and Freedom 100 Emerging Markets ETF (FRDM). 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	FRDM	Difference
Sharpe ratio: Return per unit of total volatility	2.71	3.15	-0.44
Sortino ratio: Return per unit of downside risk	3.30	3.68	-0.37
Omega ratio: Gain probability vs. loss probability	1.40	1.54	-0.14
Calmar ratio: Return relative to maximum drawdown	5.48	5.02	+0.46
Martin ratio: Return relative to average drawdown	19.42	19.36	+0.06

TSM vs. FRDM - Sharpe Ratio Comparison

The current TSM Sharpe Ratio is 2.71, which is comparable to the FRDM Sharpe Ratio of 3.15. The chart below compares the historical Sharpe Ratios of TSM and FRDM, 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. FRDM - Drawdown Comparison

The maximum TSM drawdown since its inception was -89.08%, which is greater than FRDM's maximum drawdown of -40.49%. Use the drawdown chart below to compare losses from any high point for TSM and FRDM.

Drawdown Indicators

	TSM	FRDM	Difference
Max Drawdown Largest peak-to-trough decline	-89.08%	-40.49%	-48.59%
Max Drawdown (1Y) Largest decline over 1 year	-18.14%	-16.87%	-1.27%
Max Drawdown (3Y) Largest decline over 3 years	-36.82%	-16.87%	-19.95%
Max Drawdown (5Y) Largest decline over 5 years	-56.47%	-29.25%	-27.22%
Max Drawdown (10Y) Largest decline over 10 years	-56.47%	—	—
Current Drawdown Current decline from peak	-4.87%	-4.36%	-0.51%
Average Drawdown Average peak-to-trough decline	-42.85%	-7.09%	-35.76%
Ulcer Index Depth and duration of drawdowns from previous peaks	5.11%	4.37%	+0.74%

Volatility

TSM vs. FRDM - Volatility Comparison

The current volatility for Taiwan Semiconductor Manufacturing Company Limited (TSM) is 13.42%, while Freedom 100 Emerging Markets ETF (FRDM) has a volatility of 14.27%. This indicates that TSM experiences smaller price fluctuations and is considered to be less risky than FRDM based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	TSM	FRDM	Difference
Volatility (1M) Calculated over the trailing 1-month period	13.42%	14.27%	-0.85%
Volatility (6M) Calculated over the trailing 6-month period	28.65%	24.39%	+4.26%
Volatility (1Y) Calculated over the trailing 1-year period	36.69%	26.86%	+9.83%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	37.46%	21.35%	+16.11%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	34.23%	23.09%	+11.14%

Dividends

TSM vs. FRDM - Dividend Comparison

TSM's dividend yield for the trailing twelve months is around 0.83%, less than FRDM's 1.56% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
FRDM Freedom 100 Emerging Markets ETF	1.56%	2.26%	2.53%	2.66%	2.72%	2.17%	1.11%	1.07%	0.00%	0.00%	0.00%	0.00%
TSM Taiwan Semiconductor Manufacturing Company Limited	0.83%	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 FRDM in my portfolio?

TSM and FRDM have a correlation of 0.70, 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 FRDM?

FRDM has higher volatility (14.27%) compared to TSM (13.42%). In terms of maximum drawdown, TSM dropped -89.08% vs FRDM's -40.49%.

Which has better risk-adjusted returns?

FRDM currently has the higher Sharpe Ratio (3.15 vs 2.71), 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.