TSM vs. TMF

Last updated Jun 13, 2026

TSM (Taiwan Semiconductor Manufacturing Company Limited) is a stock, while TMF (Direxion Daily 20+ Year Treasury Bull 3X ETF) is Leveraged Bonds fund tracking the ICE U.S. Treasury 20+ Year Bond Index (300%). Over the past 10 years, TSM returned 35.80%/yr vs -16.87%/yr for TMF. At a correlation of -0.17, they often move in opposite directions.

Performance

TSM vs. TMF - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Taiwan Semiconductor Manufacturing Company Limited (TSM) and Direxion Daily 20+ Year Treasury Bull 3X ETF (TMF). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, TSM achieves a 40.22% return, which is significantly higher than TMF's -5.18% return. Over the past 10 years, TSM has outperformed TMF with an annualized return of 35.80%, while TMF has yielded a comparatively lower -16.87% annualized return.

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%

TMF

• 1D: -0.93%
• 1M: 7.62%
• YTD: -5.18%
• 6M: -5.04%
• 1Y: -1.79%
• 3Y*: -19.82%
• 5Y*: -31.10%
• 10Y*: -16.87%

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

TSM vs. TMF - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
TSM Taiwan Semiconductor Manufacturing Company Limited	40.22%	55.91%	92.58%	42.33%	-36.75%	12.09%	92.67%	64.85%	-3.50%	41.46%
TMF Direxion Daily 20+ Year Treasury Bull 3X ETF	-5.18%	-2.94%	-35.95%	-13.01%	-72.60%	-19.80%	39.02%	34.75%	-11.01%	22.72%

Correlation

The correlation between TSM and TMF is 0.11, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.11
Correlation (3Y) Calculated over the trailing 3-year period	0.05
Correlation (5Y) Calculated over the trailing 5-year period	-0.00
Correlation (10Y) Calculated over the trailing 10-year period	-0.07
Correlation (All Time) Calculated using the full available price history since Apr 16, 2009	-0.17

The correlation between TSM and TMF shifts across timeframes, from -0.17 (all time) to 0.11 (1 year), reflecting how their relationship changes across market environments.

Return for Risk

TSM vs. TMF — 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

TMF

TMF Risk / Return Rank: 8
TMF Sharpe Ratio Rank: 8
TMF Sortino Ratio Rank: 8
TMF Omega Ratio Rank: 8
TMF Calmar Ratio Rank: 8
TMF Martin Ratio Rank: 8

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. TMF - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Taiwan Semiconductor Manufacturing Company Limited (TSM) and Direxion Daily 20+ Year Treasury Bull 3X ETF (TMF). 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	TMF	Difference
Sharpe ratio: Return per unit of total volatility	2.71	-0.17	+2.89
Sortino ratio: Return per unit of downside risk	3.30	-0.05	+3.36
Omega ratio: Gain probability vs. loss probability	1.40	0.99	+0.41
Calmar ratio: Return relative to maximum drawdown	5.48	-0.19	+5.67
Martin ratio: Return relative to average drawdown	19.42	-0.41	+19.84

TSM vs. TMF - Sharpe Ratio Comparison

The current TSM Sharpe Ratio is 2.71, which is higher than the TMF Sharpe Ratio of -0.17. The chart below compares the historical Sharpe Ratios of TSM and TMF, 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. TMF - Drawdown Comparison

The maximum TSM drawdown since its inception was -89.08%, roughly equal to the maximum TMF drawdown of -92.89%. Use the drawdown chart below to compare losses from any high point for TSM and TMF.

Drawdown Indicators

	TSM	TMF	Difference
Max Drawdown Largest peak-to-trough decline	-89.08%	-92.89%	+3.81%
Max Drawdown (1Y) Largest decline over 1 year	-18.14%	-26.51%	+8.37%
Max Drawdown (3Y) Largest decline over 3 years	-36.82%	-56.31%	+19.49%
Max Drawdown (5Y) Largest decline over 5 years	-56.47%	-88.81%	+32.34%
Max Drawdown (10Y) Largest decline over 10 years	-56.47%	-92.89%	+36.42%
Current Drawdown Current decline from peak	-4.87%	-92.15%	+87.28%
Average Drawdown Average peak-to-trough decline	-42.85%	-43.70%	+0.85%
Ulcer Index Depth and duration of drawdowns from previous peaks	5.11%	11.96%	-6.85%

Volatility

TSM vs. TMF - Volatility Comparison

Taiwan Semiconductor Manufacturing Company Limited (TSM) has a higher volatility of 13.42% compared to Direxion Daily 20+ Year Treasury Bull 3X ETF (TMF) at 8.43%. This indicates that TSM's price experiences larger fluctuations and is considered to be riskier than TMF based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	TSM	TMF	Difference
Volatility (1M) Calculated over the trailing 1-month period	13.42%	8.43%	+4.99%
Volatility (6M) Calculated over the trailing 6-month period	28.65%	19.46%	+9.19%
Volatility (1Y) Calculated over the trailing 1-year period	36.69%	28.49%	+8.20%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	37.46%	46.72%	-9.26%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	34.23%	43.92%	-9.69%

Dividends

TSM vs. TMF - Dividend Comparison

TSM's dividend yield for the trailing twelve months is around 0.83%, less than TMF's 4.11% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
TMF Direxion Daily 20+ Year Treasury Bull 3X ETF	4.11%	4.06%	4.29%	2.82%	1.62%	0.13%	2.23%	0.94%	1.49%	0.41%	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 TMF in my portfolio?

TSM and TMF have a correlation of 0.11, 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 TMF?

TSM has higher volatility (13.42%) compared to TMF (8.43%). In terms of maximum drawdown, TSM dropped -89.08% vs TMF's -92.89%.

Which has better risk-adjusted returns?

TSM currently has the higher Sharpe Ratio (2.71 vs -0.17), 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.