TSMZ vs. YQQQ

Last updated Jul 12, 2026

TSMZ (Direxion Daily TSM Bear 1X Shares) and YQQQ (YieldMax Short N100 Option Income Strategy ETF) are both exchange-traded funds - TSMZ is a Inverse Equities fund actively managed by Direxion, while YQQQ is a Derivative Income fund actively managed by YieldMax. Both are actively managed. Over the past year, TSMZ returned -52.29% vs -9.22% for YQQQ. A 0.64 correlation means they provide meaningful diversification when combined. TSMZ charges 0.98%/yr vs 0.99%/yr for YQQQ.

Performance

TSMZ vs. YQQQ - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Direxion Daily TSM Bear 1X Shares (TSMZ) and YieldMax Short N100 Option Income Strategy ETF (YQQQ). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, TSMZ achieves a -35.32% return, which is significantly lower than YQQQ's -6.58% return.

TSMZ

• 1D: 0.66%
• 1M: -4.73%
• 6M: -30.97%
• YTD: -35.32%
• 1Y: -52.29%
• 3Y*: —
• 5Y*: —
• 10Y*: —

YQQQ

• 1D: -0.16%
• 1M: 1.19%
• 6M: -5.53%
• YTD: -6.58%
• 1Y: -9.22%
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

TSMZ vs. YQQQ - Yearly Performance Comparison

	2026 (YTD)	2025	2024
TSMZ Direxion Daily TSM Bear 1X Shares	-35.32%	-41.91%	-11.25%
YQQQ YieldMax Short N100 Option Income Strategy ETF	-6.58%	-9.97%	-1.92%

Correlation

The correlation between TSMZ and YQQQ is 0.63, 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	0.63
Correlation (All Time) Calculated using the full available price history since Oct 3, 2024	0.64

The correlation between TSMZ and YQQQ has been stable across timeframes, ranging from 0.63 to 0.64 - a consistent structural relationship.

Return for Risk

TSMZ vs. YQQQ — Risk / Return Rank

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

TSMZ

TSMZ Risk / Return Rank: 1
TSMZ Sharpe Ratio Rank: 0
TSMZ Sortino Ratio Rank: 0
TSMZ Omega Ratio Rank: 0
TSMZ Calmar Ratio Rank: 1
TSMZ Martin Ratio Rank: 1

YQQQ

YQQQ Risk / Return Rank: 5
YQQQ Sharpe Ratio Rank: 4
YQQQ Sortino Ratio Rank: 4
YQQQ Omega Ratio Rank: 4
YQQQ Calmar Ratio Rank: 6
YQQQ Martin Ratio Rank: 5

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.

TSMZ vs. YQQQ - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Direxion Daily TSM Bear 1X Shares (TSMZ) and YieldMax Short N100 Option Income Strategy ETF (YQQQ). 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.

	TSMZ	YQQQ	Difference
Sharpe ratio: Return per unit of total volatility	-1.34	-0.66	-0.68
Sortino ratio: Return per unit of downside risk	-2.19	-0.84	-1.35
Omega ratio: Gain probability vs. loss probability	0.76	0.90	-0.15
Calmar ratio: Return relative to maximum drawdown	-0.93	-0.42	-0.51
Martin ratio: Return relative to average drawdown	-1.57	-0.98	-0.59

TSMZ vs. YQQQ - Sharpe Ratio Comparison

The current TSMZ Sharpe Ratio is -1.34, which is lower than the YQQQ Sharpe Ratio of -0.66. The chart below compares the historical Sharpe Ratios of TSMZ and YQQQ, 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

TSMZ vs. YQQQ - Drawdown Comparison

The maximum TSMZ drawdown since its inception was -74.02%, which is greater than YQQQ's maximum drawdown of -29.10%. Use the drawdown chart below to compare losses from any high point for TSMZ and YQQQ.

Drawdown Indicators

	TSMZ	YQQQ	Difference
Max Drawdown Largest peak-to-trough decline	-74.02%	-29.10%	-44.92%
Max Drawdown (1Y) Largest decline over 1 year	-56.52%	-21.80%	-34.72%
Current Drawdown Current decline from peak	-71.73%	-26.31%	-45.42%
Average Drawdown Average peak-to-trough decline	-39.59%	-14.87%	-24.72%
Ulcer Index Depth and duration of drawdowns from previous peaks	33.35%	9.25%	+24.10%

Volatility

TSMZ vs. YQQQ - Volatility Comparison

Direxion Daily TSM Bear 1X Shares (TSMZ) has a higher volatility of 17.38% compared to YieldMax Short N100 Option Income Strategy ETF (YQQQ) at 6.33%. This indicates that TSMZ's price experiences larger fluctuations and is considered to be riskier than YQQQ based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	TSMZ	YQQQ	Difference
Volatility (1M) Calculated over the trailing 1-month period	17.38%	6.33%	+11.05%
Volatility (6M) Calculated over the trailing 6-month period	31.71%	11.58%	+20.13%
Volatility (1Y) Calculated over the trailing 1-year period	39.31%	13.82%	+25.49%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	41.59%	16.56%	+25.03%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	41.59%	16.56%	+25.03%

TSMZ vs. YQQQ - Expense Ratio Comparison

TSMZ has a 0.98% expense ratio, which is lower than YQQQ's 0.99% expense ratio.

Dividends

TSMZ vs. YQQQ - Dividend Comparison

TSMZ's dividend yield for the trailing twelve months is around 4.66%, less than YQQQ's 29.59% yield.

Position	TTM	2025	2024
TSMZ Direxion Daily TSM Bear 1X Shares	4.66%	4.88%	0.86%
YQQQ YieldMax Short N100 Option Income Strategy ETF	29.59%	31.71%	7.88%

Frequently Asked Questions

Can I hold both TSMZ and YQQQ in my portfolio?

TSMZ and YQQQ have a correlation of 0.63, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, TSMZ or YQQQ?

TSMZ has higher volatility (17.38%) compared to YQQQ (6.33%). In terms of maximum drawdown, TSMZ dropped -74.02% vs YQQQ's -29.10%.

Which ETF is better, TSMZ or YQQQ?

On 1-year performance, YQQQ leads with -9.22% vs -52.29% for TSMZ. On fees, TSMZ is cheaper at 0.98% per year. On volatility, YQQQ has been the lower-risk option at 6.33%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, TSMZ or YQQQ?

Over the 1-year period, YQQQ has performed better with a -9.22% return vs -52.29%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, TSMZ or YQQQ?

TSMZ is cheaper with a 0.98% expense ratio, compared with 0.99% for YQQQ.

Which ETF pays a higher dividend yield, TSMZ or YQQQ?

YQQQ has the higher dividend yield at 29.59%, compared with 4.66% for TSMZ.

What is the main difference between TSMZ and YQQQ?

TSMZ is categorized as Inverse Equities, while YQQQ is Derivative Income. They also come from different issuers: Direxion and YieldMax. Their fees differ too: 0.98% for TSMZ and 0.99% for YQQQ.

Which has better risk-adjusted returns?

YQQQ currently has the higher Sharpe Ratio (-0.66 vs -1.34), 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.