TWM vs. TSMX

Last updated Jun 24, 2026

TWM (ProShares UltraShort Russell2000) and TSMX (Direxion Daily TSM Bull 2X Shares) are both Leveraged Equities funds. TWM is passively managed, while TSMX is actively managed. Over the past year, TWM returned -50.37% vs 240.03% for TSMX. At a correlation of -0.51, they often move in opposite directions. TWM charges 0.95%/yr vs 1.05%/yr for TSMX.

Performance

TWM vs. TSMX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in ProShares UltraShort Russell2000 (TWM) and Direxion Daily TSM Bull 2X Shares (TSMX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, TWM achieves a -32.09% return, which is significantly lower than TSMX's 80.35% return.

TWM

• 1D: 1.98%
• 1M: -7.68%
• YTD: -32.09%
• 6M: -28.69%
• 1Y: -50.37%
• 3Y*: -30.94%
• 5Y*: -17.34%
• 10Y*: -28.49%

TSMX

• 1D: -13.50%
• 1M: 12.92%
• YTD: 80.35%
• 6M: 88.28%
• 1Y: 240.03%
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

TWM vs. TSMX - Yearly Performance Comparison

	2026 (YTD)	2025	2024
TWM ProShares UltraShort Russell2000	-32.09%	-24.71%	-3.95%
TSMX Direxion Daily TSM Bull 2X Shares	80.35%	81.48%	16.84%

Correlation

The correlation between TWM and TSMX is -0.52, meaning they tend to move in opposite directions. This is especially valuable for risk management - when one declines, the other has historically tended to hold steady or rise.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	-0.52
Correlation (All Time) Calculated using the full available price history since Oct 3, 2024	-0.51

The correlation between TWM and TSMX has been stable across timeframes, ranging from -0.52 to -0.51 - a consistent structural relationship.

TWM vs. TSMX - Sectors Allocation Comparison

Sectors	TWM	TSMX
Financial Services	100.3%	-
Basic Materials	-	-
Communication Services	-	-
Consumer Cyclical	-	-
Consumer Defensive	-	-
Energy	-	-
Healthcare	-	-
Industrials	-	-
Real Estate	-	-
Technology	-	100.0%
Utilities	-	-

Return for Risk

TWM vs. TSMX — Risk / Return Rank

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

TWM

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

TSMX

TSMX Risk / Return Rank: 85
TSMX Sharpe Ratio Rank: 93
TSMX Sortino Ratio Rank: 75
TSMX Omega Ratio Rank: 69
TSMX Calmar Ratio Rank: 94
TSMX Martin Ratio Rank: 92

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.

TWM vs. TSMX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for ProShares UltraShort Russell2000 (TWM) and Direxion Daily TSM Bull 2X Shares (TSMX). 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.

	TWM	TSMX	Difference
Sharpe ratio: Return per unit of total volatility	-1.28	3.15	-4.44
Sortino ratio: Return per unit of downside risk	-2.08	3.15	-5.23
Omega ratio: Gain probability vs. loss probability	0.78	1.39	-0.61
Calmar ratio: Return relative to maximum drawdown	-0.99	6.92	-7.91
Martin ratio: Return relative to average drawdown	-1.64	22.13	-23.77

TWM vs. TSMX - Sharpe Ratio Comparison

The current TWM Sharpe Ratio is -1.28, which is lower than the TSMX Sharpe Ratio of 3.15. The chart below compares the historical Sharpe Ratios of TWM and TSMX, 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

TWM vs. TSMX - Drawdown Comparison

The maximum TWM drawdown since its inception was -99.94%, which is greater than TSMX's maximum drawdown of -63.80%. Use the drawdown chart below to compare losses from any high point for TWM and TSMX.

Drawdown Indicators

	TWM	TSMX	Difference
Max Drawdown Largest peak-to-trough decline	-99.94%	-63.80%	-36.14%
Max Drawdown (1Y) Largest decline over 1 year	-51.15%	-34.93%	-16.22%
Max Drawdown (3Y) Largest decline over 3 years	-74.07%	—	—
Max Drawdown (5Y) Largest decline over 5 years	-76.44%	—	—
Max Drawdown (10Y) Largest decline over 10 years	-96.79%	—	—
Current Drawdown Current decline from peak	-99.93%	-13.50%	-86.43%
Average Drawdown Average peak-to-trough decline	-87.29%	-15.59%	-71.70%
Ulcer Index Depth and duration of drawdowns from previous peaks	30.89%	10.90%	+19.99%

Volatility

TWM vs. TSMX - Volatility Comparison

The current volatility for ProShares UltraShort Russell2000 (TWM) is 13.21%, while Direxion Daily TSM Bull 2X Shares (TSMX) has a volatility of 33.01%. This indicates that TWM experiences smaller price fluctuations and is considered to be less risky than TSMX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	TWM	TSMX	Difference
Volatility (1M) Calculated over the trailing 1-month period	13.21%	33.01%	-19.80%
Volatility (6M) Calculated over the trailing 6-month period	28.79%	60.15%	-31.36%
Volatility (1Y) Calculated over the trailing 1-year period	39.41%	76.69%	-37.28%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	45.25%	82.69%	-37.44%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	45.84%	82.69%	-36.85%

TWM vs. TSMX - Expense Ratio Comparison

TWM has a 0.95% expense ratio, which is lower than TSMX's 1.05% expense ratio.

Dividends

TWM vs. TSMX - Dividend Comparison

TWM's dividend yield for the trailing twelve months is around 6.67%, more than TSMX's 4.58% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017
TSMX Direxion Daily TSM Bull 2X Shares	4.58%	8.01%	0.53%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
TWM ProShares UltraShort Russell2000	6.67%	5.36%	6.21%	4.72%	0.17%	0.00%	0.41%	1.49%	0.73%	0.05%

Frequently Asked Questions

Can I hold both TWM and TSMX in my portfolio?

TWM and TSMX have a correlation of -0.52, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, TWM or TSMX?

TSMX has higher volatility (33.01%) compared to TWM (13.21%). In terms of maximum drawdown, TWM dropped -99.94% vs TSMX's -63.80%.

Which ETF is better, TWM or TSMX?

On 1-year performance, TSMX leads with 240.03% vs -50.37% for TWM. On fees, TWM is cheaper at 0.95% per year. On volatility, TWM has been the lower-risk option at 13.21%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, TWM or TSMX?

Over the 1-year period, TSMX has performed better with a 240.03% return vs -50.37%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, TWM or TSMX?

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

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

TWM has the higher dividend yield at 6.67%, compared with 4.58% for TSMX.

What is the main difference between TWM and TSMX?

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

Which has better risk-adjusted returns?

TSMX currently has the higher Sharpe Ratio (3.15 vs -1.28), 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.