TSM vs. QQQ
Compare and contrast key facts about Taiwan Semiconductor Manufacturing Company Limited (TSM) and Invesco QQQ (QQQ).
QQQ is a passively managed fund by Invesco that tracks the performance of the NASDAQ-100 Index. It was launched on Mar 10, 1999.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: TSM or QQQ.
Key characteristics
| TSM | QQQ | |
|---|---|---|
| YTD Return | 33.51% | 5.38% |
| 1Y Return | 68.33% | 35.44% |
| 3Y Return (Ann) | 6.47% | 8.91% |
| 5Y Return (Ann) | 29.20% | 18.53% |
| 10Y Return (Ann) | 24.58% | 18.34% |
| Sharpe Ratio | 2.17 | 2.40 |
| Daily Std Dev | 32.82% | 16.32% |
| Max Drawdown | -84.63% | -82.98% |
| Current Drawdown | -6.94% | -3.45% |
Correlation
The correlation between TSM and QQQ is 0.61, which is considered to be moderate. This suggests that the two assets have some degree of positive relationship in their price movements. Moderate correlation can be acceptable for portfolio diversification, offering a balance between risk and potential returns.
Performance
TSM vs. QQQ - Performance Comparison
In the year-to-date period, TSM achieves a 33.51% return, which is significantly higher than QQQ's 5.38% return. Over the past 10 years, TSM has outperformed QQQ with an annualized return of 24.58%, while QQQ has yielded a comparatively lower 18.34% annualized return. The chart below displays the growth of a $10,000 investment in both assets, with all prices adjusted for splits and dividends.
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Risk-Adjusted Performance
TSM vs. QQQ - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for Taiwan Semiconductor Manufacturing Company Limited (TSM) and Invesco QQQ (QQQ). 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.
Dividends
TSM vs. QQQ - Dividend Comparison
TSM's dividend yield for the trailing twelve months is around 1.42%, more than QQQ's 0.61% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
TSM Taiwan Semiconductor Manufacturing Company Limited | 1.42% | 1.78% | 2.48% | 1.56% | 1.58% | 3.49% | 3.55% | 2.32% | 2.61% | 2.54% | 1.79% | 2.30% |
QQQ Invesco QQQ | 0.61% | 0.62% | 0.80% | 0.43% | 0.55% | 0.74% | 0.91% | 0.84% | 1.06% | 0.99% | 1.41% | 1.01% |
Drawdowns
TSM vs. QQQ - Drawdown Comparison
The maximum TSM drawdown since its inception was -84.63%, roughly equal to the maximum QQQ drawdown of -82.98%. Use the drawdown chart below to compare losses from any high point for TSM and QQQ. For additional features, visit the drawdowns tool.
Volatility
TSM vs. QQQ - Volatility Comparison
Taiwan Semiconductor Manufacturing Company Limited (TSM) has a higher volatility of 10.11% compared to Invesco QQQ (QQQ) at 5.12%. This indicates that TSM's price experiences larger fluctuations and is considered to be riskier than QQQ based on this measure. The chart below showcases a comparison of their rolling one-month volatility.