TSMY vs. TSM

Last updated Jun 24, 2026

TSMY (YieldMax TSM Option Income Strategy ETF) is Derivative Income fund actively managed by YieldMax, while TSM (Taiwan Semiconductor Manufacturing Company Limited) is a stock. Over the past year, TSMY returned 82.45% vs 109.75% for TSM. With a 0.98 correlation, they move nearly in lockstep.

Performance

TSMY vs. TSM - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in YieldMax TSM Option Income Strategy ETF (TSMY) and Taiwan Semiconductor Manufacturing Company Limited (TSM). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, TSMY achieves a 35.90% return, which is significantly lower than TSM's 44.34% return.

TSMY

• 1D: -5.90%
• 1M: 5.93%
• YTD: 35.90%
• 6M: 38.06%
• 1Y: 82.45%
• 3Y*: —
• 5Y*: —
• 10Y*: —

TSM

• 1D: -6.69%
• 1M: 8.13%
• YTD: 44.34%
• 6M: 47.71%
• 1Y: 109.75%
• 3Y*: 64.69%
• 5Y*: 32.19%
• 10Y*: 36.14%

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

TSMY vs. TSM - Yearly Performance Comparison

	2026 (YTD)	2025	2024
TSMY YieldMax TSM Option Income Strategy ETF	35.90%	41.00%	8.05%
TSM Taiwan Semiconductor Manufacturing Company Limited	44.34%	55.91%	15.58%

Correlation

The correlation between TSMY and TSM is 0.98 - these two move nearly in lockstep. At this level, holding both provides almost no diversification benefit. If you already own one, adding the other does little to reduce portfolio risk.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.98
Correlation (All Time) Calculated using the full available price history since Aug 21, 2024	0.98

The correlation between TSMY and TSM has been stable across timeframes, ranging from 0.98 to 0.98 - a consistent structural relationship.

Return for Risk

TSMY vs. TSM — Risk / Return Rank

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

TSMY

TSMY Risk / Return Rank: 84
TSMY Sharpe Ratio Rank: 86
TSMY Sortino Ratio Rank: 77
TSMY Omega Ratio Rank: 77
TSMY Calmar Ratio Rank: 90
TSMY Martin Ratio Rank: 90

TSM

TSM Risk / Return Rank: 93
TSM Sharpe Ratio Rank: 95
TSM Sortino Ratio Rank: 92
TSM Omega Ratio Rank: 90
TSM Calmar Ratio Rank: 94
TSM Martin Ratio Rank: 96

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.

TSMY vs. TSM - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for YieldMax TSM Option Income Strategy ETF (TSMY) and Taiwan Semiconductor Manufacturing Company Limited (TSM). 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.

	TSMY	TSM	Difference
Sharpe ratio: Return per unit of total volatility	2.66	2.89	-0.23
Sortino ratio: Return per unit of downside risk	3.23	3.41	-0.18
Omega ratio: Gain probability vs. loss probability	1.43	1.42	+0.01
Calmar ratio: Return relative to maximum drawdown	5.35	6.08	-0.74
Martin ratio: Return relative to average drawdown	19.38	21.46	-2.07

TSMY vs. TSM - Sharpe Ratio Comparison

The current TSMY Sharpe Ratio is 2.66, which is comparable to the TSM Sharpe Ratio of 2.89. The chart below compares the historical Sharpe Ratios of TSMY and TSM, 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

TSMY vs. TSM - Drawdown Comparison

The maximum TSMY drawdown since its inception was -31.15%, smaller than the maximum TSM drawdown of -89.08%. Use the drawdown chart below to compare losses from any high point for TSMY and TSM.

Drawdown Indicators

	TSMY	TSM	Difference
Max Drawdown Largest peak-to-trough decline	-31.15%	-89.08%	+57.93%
Max Drawdown (1Y) Largest decline over 1 year	-15.50%	-18.14%	+2.64%
Max Drawdown (3Y) Largest decline over 3 years	—	-36.82%	—
Max Drawdown (5Y) Largest decline over 5 years	—	-56.47%	—
Max Drawdown (10Y) Largest decline over 10 years	—	-56.47%	—
Current Drawdown Current decline from peak	-5.90%	-6.69%	+0.79%
Average Drawdown Average peak-to-trough decline	-5.44%	-42.81%	+37.37%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.27%	5.13%	-0.86%

Volatility

TSMY vs. TSM - Volatility Comparison

The current volatility for YieldMax TSM Option Income Strategy ETF (TSMY) is 13.61%, while Taiwan Semiconductor Manufacturing Company Limited (TSM) has a volatility of 16.35%. This indicates that TSMY experiences smaller price fluctuations and is considered to be less risky than TSM based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	TSMY	TSM	Difference
Volatility (1M) Calculated over the trailing 1-month period	13.61%	16.35%	-2.74%
Volatility (6M) Calculated over the trailing 6-month period	25.03%	29.96%	-4.93%
Volatility (1Y) Calculated over the trailing 1-year period	31.14%	38.15%	-7.01%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	33.94%	37.77%	-3.83%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	33.94%	34.39%	-0.45%

Dividends

TSMY vs. TSM - Dividend Comparison

TSMY's dividend yield for the trailing twelve months is around 51.03%, more than TSM's 0.81% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
TSM Taiwan Semiconductor Manufacturing Company Limited	0.81%	1.00%	1.18%	1.78%	2.49%	1.57%	1.56%	3.46%	3.64%	2.32%	2.61%	2.54%
TSMY YieldMax TSM Option Income Strategy ETF	51.03%	56.76%	13.71%	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 TSMY and TSM in my portfolio?

With a correlation of 0.98, TSMY and TSM move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.

Which is riskier, TSMY or TSM?

TSM has higher volatility (16.35%) compared to TSMY (13.61%). In terms of maximum drawdown, TSMY dropped -31.15% vs TSM's -89.08%.

Which has better risk-adjusted returns?

TSM currently has the higher Sharpe Ratio (2.89 vs 2.66), 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.