TWN vs. SOXL

Last updated Jun 3, 2026

TWN (The Taiwan Fund Inc.) and SOXL (Direxion Daily Semiconductor Bull 3X ETF) are both funds - TWN is a Asia Pacific Equities fund managed by Nomura Asset Management, while SOXL is a Leveraged Equities fund tracking the ICE Semiconductor Index. Over the past 10 years, TWN returned 30.17%/yr vs 65.39%/yr for SOXL. At a 0.49 correlation, their price movements are largely independent.

Performance

TWN vs. SOXL - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in The Taiwan Fund Inc. (TWN) and Direxion Daily Semiconductor Bull 3X ETF (SOXL). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, TWN achieves a 90.00% return, which is significantly lower than SOXL's 567.48% return. Over the past 10 years, TWN has underperformed SOXL with an annualized return of 30.17%, while SOXL has yielded a comparatively higher 65.39% annualized return.

TWN

• 1D: -0.11%
• 1M: 8.54%
• YTD: 90.00%
• 6M: 99.81%
• 1Y: 195.95%
• 3Y*: 66.17%
• 5Y*: 35.51%
• 10Y*: 30.17%

SOXL

• 1D: 5.34%
• 1M: 119.95%
• YTD: 567.48%
• 6M: 502.28%
• 1Y: 1,438.30%
• 3Y*: 135.13%
• 5Y*: 48.72%
• 10Y*: 65.39%

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

TWN vs. SOXL - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
TWN The Taiwan Fund Inc.	90.00%	54.11%	32.76%	51.73%	-38.54%	58.14%	40.71%	47.00%	-19.15%	33.80%
SOXL Direxion Daily Semiconductor Bull 3X ETF	567.48%	54.91%	-12.31%	226.98%	-85.66%	118.84%	70.04%	231.83%	-39.07%	141.71%

Correlation

The correlation between TWN and SOXL is 0.49, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.50
Correlation (3Y) Calculated over the trailing 3-year period	0.50
Correlation (5Y) Calculated over the trailing 5-year period	0.54
Correlation (10Y) Calculated over the trailing 10-year period	0.50
Correlation (All Time) Calculated using the full available price history since Mar 12, 2010	0.49

The correlation between TWN and SOXL has been stable across timeframes, ranging from 0.49 to 0.54 - a consistent structural relationship.

Return for Risk

TWN vs. SOXL — Risk / Return Rank

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

TWN

TWN Risk / Return Rank: 99
TWN Sharpe Ratio Rank: 100
TWN Sortino Ratio Rank: 98
TWN Omega Ratio Rank: 97
TWN Calmar Ratio Rank: 100
TWN Martin Ratio Rank: 99

SOXL

SOXL Risk / Return Rank: 97
SOXL Sharpe Ratio Rank: 100
SOXL Sortino Ratio Rank: 95
SOXL Omega Ratio Rank: 95
SOXL Calmar Ratio Rank: 99
SOXL Martin Ratio Rank: 99

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.

TWN vs. SOXL - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for The Taiwan Fund Inc. (TWN) and Direxion Daily Semiconductor Bull 3X ETF (SOXL). 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.

	TWN	SOXL	Difference
Sharpe ratio Return per unit of total volatility	7.36	14.28	-6.93
Sortino ratio Return per unit of downside risk	7.40	5.17	+2.23
Omega ratio Gain probability vs. loss probability	2.02	1.72	+0.30
Calmar ratio Return relative to maximum drawdown	21.97	33.47	-11.50
Martin ratio Return relative to average drawdown	72.01	114.79	-42.78
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

TWN vs. SOXL - Sharpe Ratio Comparison

The current TWN Sharpe Ratio is 7.36, which is lower than the SOXL Sharpe Ratio of 14.28. The chart below compares the historical Sharpe Ratios of TWN and SOXL, 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

	TWN	SOXL	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	7.36	14.28	-6.93
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	1.50	0.46	+1.04
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	1.34	0.66	+0.68
Sharpe Ratio (All Time) Calculated using the full available price history	0.24	0.52	-0.28

Drawdowns

TWN vs. SOXL - Drawdown Comparison

The maximum TWN drawdown since its inception was -79.52%, smaller than the maximum SOXL drawdown of -90.46%. Use the drawdown chart below to compare losses from any high point for TWN and SOXL.

Drawdown Indicators

	TWN	SOXL	Difference
Max Drawdown Largest peak-to-trough decline	-79.52%	-90.46%	+10.94%
Max Drawdown (1Y) Largest decline over 1 year	-9.09%	-43.47%	+34.38%
Max Drawdown (3Y) Largest decline over 3 years	-29.97%	-87.88%	+57.91%
Max Drawdown (5Y) Largest decline over 5 years	-51.72%	-90.46%	+38.74%
Max Drawdown (10Y) Largest decline over 10 years	-51.72%	-90.46%	+38.74%
Current Drawdown Current decline from peak	-0.11%	0.00%	-0.11%
Average Drawdown Average peak-to-trough decline	-37.41%	-35.01%	-2.40%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.77%	12.65%	-9.88%

Volatility

TWN vs. SOXL - Volatility Comparison

The current volatility for The Taiwan Fund Inc. (TWN) is 11.85%, while Direxion Daily Semiconductor Bull 3X ETF (SOXL) has a volatility of 40.82%. This indicates that TWN experiences smaller price fluctuations and is considered to be less risky than SOXL based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	TWN	SOXL	Difference
Volatility (1M) Calculated over the trailing 1-month period	11.85%	40.82%	-28.97%
Volatility (6M) Calculated over the trailing 6-month period	22.86%	81.29%	-58.43%
Volatility (1Y) Calculated over the trailing 1-year period	26.81%	102.11%	-75.30%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	23.87%	107.25%	-83.38%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	22.52%	99.04%	-76.52%

Dividends

TWN vs. SOXL - Dividend Comparison

TWN's dividend yield for the trailing twelve months is around 6.11%, more than SOXL's 0.03% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016
SOXL Direxion Daily Semiconductor Bull 3X ETF	0.03%	0.34%	1.18%	0.51%	1.07%	0.04%	0.05%	0.38%	1.30%	0.09%	4.84%
TWN The Taiwan Fund Inc.	6.11%	11.62%	19.14%	1.26%	0.00%	7.78%	12.91%	8.26%	11.27%	3.16%	0.00%

Frequently Asked Questions

Can I hold both TWN and SOXL in my portfolio?

TWN and SOXL have a correlation of 0.49, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, TWN or SOXL?

SOXL has higher volatility (40.82%) compared to TWN (11.85%). In terms of maximum drawdown, TWN dropped -79.52% vs SOXL's -90.46%.

Which has better risk-adjusted returns?

SOXL currently has the higher Sharpe Ratio (14.28 vs 7.36), 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.