TSMX vs. TQQQ

Last updated Jun 4, 2026

TSMX (Direxion Daily TSM Bull 2X Shares) and TQQQ (ProShares UltraPro QQQ) are both Leveraged Equities funds. TSMX is actively managed, while TQQQ is passively managed. Over the past year, TSMX returned 295.18% vs 137.89% for TQQQ. A 0.66 correlation means they provide meaningful diversification when combined. TSMX charges 1.05%/yr vs 0.95%/yr for TQQQ.

Performance

TSMX vs. TQQQ - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Direxion Daily TSM Bull 2X Shares (TSMX) and ProShares UltraPro QQQ (TQQQ). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, TSMX achieves a 85.80% return, which is significantly higher than TQQQ's 64.46% return.

TSMX

• 1D: -4.27%
• 1M: 15.97%
• YTD: 85.80%
• 6M: 94.81%
• 1Y: 295.18%
• 3Y*: —
• 5Y*: —
• 10Y*: —

TQQQ

• 1D: -0.76%
• 1M: 33.35%
• YTD: 64.46%
• 6M: 55.93%
• 1Y: 137.89%
• 3Y*: 69.49%
• 5Y*: 28.37%
• 10Y*: 45.33%

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

TSMX vs. TQQQ - Yearly Performance Comparison

	2026 (YTD)	2025	2024
TSMX Direxion Daily TSM Bull 2X Shares	85.80%	81.48%	14.76%
TQQQ ProShares UltraPro QQQ	64.46%	34.35%	14.20%

Correlation

The correlation between TSMX and TQQQ is 0.64, 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	0.64
Correlation (All Time) Calculated using the full available price history since Oct 4, 2024	0.66

The correlation between TSMX and TQQQ has been stable across timeframes, ranging from 0.64 to 0.66 - a consistent structural relationship.

TSMX vs. TQQQ - Sectors Allocation Comparison

Sectors	TSMX	TQQQ
Technology	100.0%	53.8%
Basic Materials	-	1.1%
Communication Services	-	15.8%
Consumer Cyclical	-	12.3%
Consumer Defensive	-	7.7%
Energy	-	0.6%
Financial Services	-	0.2%
Healthcare	-	4.2%
Industrials	-	2.8%
Real Estate	-	0.1%
Utilities	-	1.4%

Return for Risk

TSMX vs. TQQQ — Risk / Return Rank

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

TSMX

TSMX Risk / Return Rank: 89
TSMX Sharpe Ratio Rank: 96
TSMX Sortino Ratio Rank: 83
TSMX Omega Ratio Rank: 75
TSMX Calmar Ratio Rank: 95
TSMX Martin Ratio Rank: 94

TQQQ

TQQQ Risk / Return Rank: 71
TQQQ Sharpe Ratio Rank: 86
TQQQ Sortino Ratio Rank: 65
TQQQ Omega Ratio Rank: 65
TQQQ Calmar Ratio Rank: 73
TQQQ Martin Ratio Rank: 66

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.

TSMX vs. TQQQ - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Direxion Daily TSM Bull 2X Shares (TSMX) and ProShares UltraPro QQQ (TQQQ). 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.

	TSMX	TQQQ	Difference
Sharpe ratio: Return per unit of total volatility	4.15	2.92	+1.24
Sortino ratio: Return per unit of downside risk	3.78	3.09	+0.69
Omega ratio: Gain probability vs. loss probability	1.45	1.40	+0.05
Calmar ratio: Return relative to maximum drawdown	8.51	3.75	+4.76
Martin ratio: Return relative to average drawdown	27.80	12.27	+15.53
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

TSMX vs. TQQQ - Sharpe Ratio Comparison

The current TSMX Sharpe Ratio is 4.15, which is higher than the TQQQ Sharpe Ratio of 2.92. The chart below compares the historical Sharpe Ratios of TSMX and TQQQ, 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

	TSMX	TQQQ	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	4.15	2.92	+1.24
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	—	0.43	—
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	—	0.69	—
Sharpe Ratio (All Time) Calculated using the full available price history	1.57	0.74	+0.83

Drawdowns

TSMX vs. TQQQ - Drawdown Comparison

The maximum TSMX drawdown since its inception was -63.80%, smaller than the maximum TQQQ drawdown of -81.66%. Use the drawdown chart below to compare losses from any high point for TSMX and TQQQ.

Drawdown Indicators

	TSMX	TQQQ	Difference
Max Drawdown Largest peak-to-trough decline	-63.80%	-81.66%	+17.86%
Max Drawdown (1Y) Largest decline over 1 year	-34.93%	-36.97%	+2.04%
Max Drawdown (3Y) Largest decline over 3 years	—	-58.04%	—
Max Drawdown (5Y) Largest decline over 5 years	—	-81.66%	—
Max Drawdown (10Y) Largest decline over 10 years	—	-81.66%	—
Current Drawdown Current decline from peak	-4.27%	-0.76%	-3.51%
Average Drawdown Average peak-to-trough decline	-15.85%	-18.52%	+2.67%
Ulcer Index Depth and duration of drawdowns from previous peaks	10.68%	11.28%	-0.60%

Volatility

TSMX vs. TQQQ - Volatility Comparison

Direxion Daily TSM Bull 2X Shares (TSMX) has a higher volatility of 22.91% compared to ProShares UltraPro QQQ (TQQQ) at 13.29%. This indicates that TSMX's price experiences larger fluctuations and is considered to be riskier than TQQQ based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	TSMX	TQQQ	Difference
Volatility (1M) Calculated over the trailing 1-month period	22.91%	13.29%	+9.62%
Volatility (6M) Calculated over the trailing 6-month period	54.45%	36.04%	+18.41%
Volatility (1Y) Calculated over the trailing 1-year period	71.63%	47.60%	+24.03%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	80.93%	66.53%	+14.40%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	80.93%	65.96%	+14.97%

TSMX vs. TQQQ - Expense Ratio Comparison

TSMX has a 1.05% expense ratio, which is higher than TQQQ's 0.95% expense ratio.

Dividends

TSMX vs. TQQQ - Dividend Comparison

TSMX's dividend yield for the trailing twelve months is around 4.44%, more than TQQQ's 0.36% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
TQQQ ProShares UltraPro QQQ	0.36%	0.65%	1.27%	1.26%	0.57%	0.00%	0.00%	0.06%	0.11%	0.00%	0.00%	0.01%
TSMX Direxion Daily TSM Bull 2X Shares	4.44%	8.01%	0.53%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both TSMX and TQQQ in my portfolio?

TSMX and TQQQ have a correlation of 0.64, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, TSMX or TQQQ?

TSMX has higher volatility (22.91%) compared to TQQQ (13.29%). In terms of maximum drawdown, TSMX dropped -63.80% vs TQQQ's -81.66%.

Which ETF is better, TSMX or TQQQ?

On 1-year performance, TSMX leads with 295.18% vs 137.89% for TQQQ. On fees, TQQQ is cheaper at 0.95% per year. On volatility, TQQQ has been the lower-risk option at 13.29%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, TSMX or TQQQ?

Over the 1-year period, TSMX has performed better with a 295.18% return vs 137.89%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, TSMX or TQQQ?

TQQQ is cheaper with a 0.95% expense ratio, compared with 1.05% for TSMX.

Which ETF pays a higher dividend yield, TSMX or TQQQ?

TSMX has the higher dividend yield at 4.44%, compared with 0.36% for TQQQ.

What is the main difference between TSMX and TQQQ?

They also come from different issuers: Direxion and ProShares. Their fees differ too: 1.05% for TSMX and 0.95% for TQQQ.

Which has better risk-adjusted returns?

TSMX currently has the higher Sharpe Ratio (4.15 vs 2.92), 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.