WTAI vs. TSM

Last updated Jun 4, 2026

WTAI (WisdomTree Artificial Intelligence and Innovation Fund) is Technology Equities fund tracking the WisdomTree Artificial Intelligence & Innovation Index, while TSM (Taiwan Semiconductor Manufacturing Company Limited) is a stock. Over the past 3 years, WTAI returned 37.21%/yr vs 66.46%/yr for TSM. A 0.72 correlation means they provide meaningful diversification when combined.

Performance

WTAI vs. TSM - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in WisdomTree Artificial Intelligence and Innovation Fund (WTAI) 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, WTAI achieves a 59.81% return, which is significantly higher than TSM's 44.10% return.

WTAI

• 1D: -0.89%
• 1M: 26.62%
• YTD: 59.81%
• 6M: 58.39%
• 1Y: 109.20%
• 3Y*: 37.21%
• 5Y*: —
• 10Y*: —

TSM

• 1D: -2.24%
• 1M: 8.73%
• YTD: 44.10%
• 6M: 48.60%
• 1Y: 123.66%
• 3Y*: 66.46%
• 5Y*: 31.74%
• 10Y*: 36.20%

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

WTAI vs. TSM - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021
WTAI WisdomTree Artificial Intelligence and Innovation Fund	59.81%	34.83%	6.53%	46.32%	-42.27%	-0.83%
TSM Taiwan Semiconductor Manufacturing Company Limited	44.10%	55.91%	92.58%	42.33%	-36.75%	1.09%

Correlation

The correlation between WTAI and TSM is 0.66, 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	0.66
Correlation (3Y) Calculated over the trailing 3-year period	0.70
Correlation (All Time) Calculated using the full available price history since Dec 10, 2021	0.72

The correlation between WTAI and TSM has been stable across timeframes, ranging from 0.66 to 0.72 - a consistent structural relationship.

Return for Risk

WTAI vs. TSM — Risk / Return Rank

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

WTAI

WTAI Risk / Return Rank: 92
WTAI Sharpe Ratio Rank: 95
WTAI Sortino Ratio Rank: 90
WTAI Omega Ratio Rank: 89
WTAI Calmar Ratio Rank: 94
WTAI Martin Ratio Rank: 91

TSM

TSM Risk / Return Rank: 95
TSM Sharpe Ratio Rank: 96
TSM Sortino Ratio Rank: 95
TSM Omega Ratio Rank: 92
TSM Calmar Ratio Rank: 94
TSM Martin Ratio Rank: 97

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.

WTAI vs. TSM - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for WisdomTree Artificial Intelligence and Innovation Fund (WTAI) 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.

	WTAI	TSM	Difference
Sharpe ratio: Return per unit of total volatility	3.87	3.49	+0.38
Sortino ratio: Return per unit of downside risk	4.29	4.06	+0.23
Omega ratio: Gain probability vs. loss probability	1.57	1.49	+0.08
Calmar ratio: Return relative to maximum drawdown	7.12	6.86	+0.27
Martin ratio: Return relative to average drawdown	22.73	24.68	-1.95
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

WTAI vs. TSM - Sharpe Ratio Comparison

The current WTAI Sharpe Ratio is 3.87, which is comparable to the TSM Sharpe Ratio of 3.49. The chart below compares the historical Sharpe Ratios of WTAI 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.

Sharpe Ratios by Period

	WTAI	TSM	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	3.87	3.49	+0.38
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	—	0.86	—
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	—	1.06	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.51	0.37	+0.14

Drawdowns

WTAI vs. TSM - Drawdown Comparison

The maximum WTAI drawdown since its inception was -45.92%, smaller than the maximum TSM drawdown of -89.08%. Use the drawdown chart below to compare losses from any high point for WTAI and TSM.

Drawdown Indicators

	WTAI	TSM	Difference
Max Drawdown Largest peak-to-trough decline	-45.92%	-89.08%	+43.16%
Max Drawdown (1Y) Largest decline over 1 year	-15.42%	-18.14%	+2.72%
Max Drawdown (3Y) Largest decline over 3 years	-31.83%	-36.82%	+4.99%
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	-0.89%	-2.24%	+1.35%
Average Drawdown Average peak-to-trough decline	-19.80%	-42.89%	+23.09%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.82%	5.03%	-0.21%

Volatility

WTAI vs. TSM - Volatility Comparison

The current volatility for WisdomTree Artificial Intelligence and Innovation Fund (WTAI) is 10.86%, while Taiwan Semiconductor Manufacturing Company Limited (TSM) has a volatility of 11.64%. This indicates that WTAI 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

	WTAI	TSM	Difference
Volatility (1M) Calculated over the trailing 1-month period	10.86%	11.64%	-0.78%
Volatility (6M) Calculated over the trailing 6-month period	22.71%	27.19%	-4.48%
Volatility (1Y) Calculated over the trailing 1-year period	28.39%	35.61%	-7.22%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	30.99%	37.27%	-6.28%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	30.99%	34.12%	-3.13%

Dividends

WTAI vs. TSM - Dividend Comparison

WTAI's dividend yield for the trailing twelve months is around 1.13%, more than TSM's 0.76% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
TSM Taiwan Semiconductor Manufacturing Company Limited	0.76%	1.00%	1.18%	1.78%	2.49%	1.57%	1.56%	3.46%	3.64%	2.32%	2.61%	2.54%
WTAI WisdomTree Artificial Intelligence and Innovation Fund	1.13%	1.81%	0.19%	0.24%	0.22%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both WTAI and TSM in my portfolio?

WTAI and TSM have a correlation of 0.66, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, WTAI or TSM?

TSM has higher volatility (11.64%) compared to WTAI (10.86%). In terms of maximum drawdown, WTAI dropped -45.92% vs TSM's -89.08%.

Which has better risk-adjusted returns?

WTAI currently has the higher Sharpe Ratio (3.87 vs 3.49), 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.