VDE vs. TSM
VDE (Vanguard Energy ETF) is Energy Equities fund tracking the MSCI US Investable Market Energy 25/50 Index, while TSM (Taiwan Semiconductor Manufacturing Company Limited) is a stock. Over the past 10 years, VDE returned 9.39%/yr vs 35.80%/yr for TSM. At a 0.36 correlation, their price movements are largely independent.
Performance
VDE vs. TSM - Performance Comparison
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Returns By Period
In the year-to-date period, VDE achieves a 29.66% return, which is significantly lower than TSM's 40.22% return. Over the past 10 years, VDE has underperformed TSM with an annualized return of 9.39%, while TSM has yielded a comparatively higher 35.80% annualized return.
VDE
- 1D
- 0.77%
- 1M
- -1.49%
- YTD
- 29.66%
- 6M
- 28.33%
- 1Y
- 35.15%
- 3Y*
- 16.71%
- 5Y*
- 20.05%
- 10Y*
- 9.39%
TSM
- 1D
- 0.68%
- 1M
- 1.72%
- YTD
- 40.22%
- 6M
- 45.91%
- 1Y
- 103.01%
- 3Y*
- 60.80%
- 5Y*
- 31.30%
- 10Y*
- 35.80%
VDE vs. TSM - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
VDE Vanguard Energy ETF | 29.66% | 7.11% | 6.75% | 0.03% | 62.89% | 56.31% | -33.02% | 9.28% | -19.95% | -2.50% |
TSM Taiwan Semiconductor Manufacturing Company Limited | 40.22% | 55.91% | 92.58% | 42.33% | -36.75% | 12.09% | 92.67% | 64.85% | -3.50% | 41.46% |
Correlation
The correlation between VDE and TSM is -0.08, meaning there is essentially no relationship between their price movements. Each responds to its own set of market drivers, making them strong candidates for combining in a diversified portfolio.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | -0.08 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.07 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.17 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.25 |
Correlation (All Time) Calculated using the full available price history since Sep 29, 2004 | 0.36 |
The correlation between VDE and TSM shifts across timeframes, from -0.08 (1 year) to 0.36 (all time), reflecting how their relationship changes across market environments.
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Return for Risk
VDE vs. TSM — Risk / Return Rank
VDE
TSM
VDE vs. TSM - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Energy ETF (VDE) 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.
| VDE | TSM | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.87 | ||
| Sortino ratioReturn per unit of downside risk | -0.88 | ||
| Omega ratioGain probability vs. loss probability | 1.30 | 1.40 | -0.10 |
| Calmar ratioReturn relative to maximum drawdown | 3.20 | 5.48 | -2.28 |
| Martin ratioReturn relative to average drawdown | 8.95 | 19.42 | -10.48 |
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Drawdowns
VDE vs. TSM - Drawdown Comparison
The maximum VDE drawdown since its inception was -74.20%, smaller than the maximum TSM drawdown of -89.08%. Use the drawdown chart below to compare losses from any high point for VDE and TSM.
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Drawdown Indicators
| VDE | TSM | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -74.20% | -89.08% | +14.88% |
Max Drawdown (1Y)Largest decline over 1 year | -11.80% | -18.14% | +6.34% |
Max Drawdown (3Y)Largest decline over 3 years | -21.41% | -36.82% | +15.41% |
Max Drawdown (5Y)Largest decline over 5 years | -26.58% | -56.47% | +29.89% |
Max Drawdown (10Y)Largest decline over 10 years | -69.29% | -56.47% | -12.82% |
Current DrawdownCurrent decline from peak | -8.26% | -4.87% | -3.39% |
Average DrawdownAverage peak-to-trough decline | -19.95% | -42.85% | +22.90% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 4.21% | 5.11% | -0.90% |
Volatility
VDE vs. TSM - Volatility Comparison
The current volatility for Vanguard Energy ETF (VDE) is 7.15%, while Taiwan Semiconductor Manufacturing Company Limited (TSM) has a volatility of 13.42%. This indicates that VDE 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.
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Volatility by Period
| VDE | TSM | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 7.15% | 13.42% | -6.27% |
Volatility (6M)Calculated over the trailing 6-month period | 16.59% | 28.65% | -12.06% |
Volatility (1Y)Calculated over the trailing 1-year period | 20.46% | 36.69% | -16.23% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 26.45% | 37.46% | -11.01% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 29.93% | 34.23% | -4.30% |
Dividends
VDE vs. TSM - Dividend Comparison
VDE's dividend yield for the trailing twelve months is around 2.42%, more than TSM's 0.83% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
TSM Taiwan Semiconductor Manufacturing Company Limited | 0.83% | 1.00% | 1.18% | 1.78% | 2.49% | 1.57% | 1.56% | 3.46% | 3.64% | 2.32% | 2.61% | 2.54% |
VDE Vanguard Energy ETF | 2.42% | 3.11% | 3.23% | 3.34% | 3.65% | 4.13% | 4.76% | 3.42% | 3.35% | 2.90% | 2.31% | 3.17% |
Frequently Asked Questions
VDE and TSM have a correlation of -0.08, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
TSM has higher volatility (13.42%) compared to VDE (7.15%). In terms of maximum drawdown, VDE dropped -74.20% vs TSM's -89.08%.
TSM currently has the higher Sharpe Ratio (2.71 vs 1.85), 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.
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