SOXX vs TSM: Correlation
iShares Semiconductor ETF (SOXX) and Taiwan Semiconductor Manufacturing Company Ltd. (TSM) show a strong relationship: their 3-year correlation of weekly returns is 0.78.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are SOXX and TSM?
Across a 3-year window, the weekly returns of SOXX and TSM correlate at 0.78, strong. The relationship has been stable: the 1-year correlation (0.77) sits close to the 3-year figure. Stretching to 5 years gives 0.77, with an annualized covariance of 955.3 %².
Within SOXX's tracked universe of 127 assets, TSM comes in at #20 by 3-year correlation. Correlation aside, the last 12 months split them widely, with SOXX ahead by 29.5 points (+110.0% versus +80.5%).
How is this computed?
Pearson correlation on weekly returns: ρ(A,B) = cov(rA, rB) / (σA · σB), over windows of 52, 156 and 260 weeks. Covariance is annualized (×52) and expressed in %². Full definitions on the methodology page.
SOXX vs TSM: side by side
| SOXX (iShares Semiconductor ETF) | TSM (Taiwan Semiconductor Manufacturing Company Ltd.) | |
|---|---|---|
| 1-year return | +110.0% | +80.5% |
| 5-year return | +247.5% | +289.6% |
| Volatility (ann.) | 35.2% | 34.9% |
| Beta vs S&P 500 | 1.93 | 1.59 |
| Max drawdown (3Y) | -41.4% | -36.8% |
| Market cap | – | $2,216.2B |
| P/E (trailing) | – | 31.1 |
| Dividend yield | 0.29% | 6.22% |
| Expense ratio | 0.33% | – |
| Assets under management | $44.7B | – |
| Sector / category | ETF · Thematic | US Listed |
SOXX is a Technology fund from iShares: $44.7B under management, 30 holdings, a 0.33% expense ratio, a 0.29% trailing dividend yield.
Year-by-year returns
| Year | SOXX | TSM |
|---|---|---|
| 2022 | -35.1% | -36.7% |
| 2023 | +67.1% | +42.3% |
| 2024 | +12.9% | +92.6% |
| 2025 | +40.7% | +55.9% |
| 2026 | +74.7% | +41.3% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
Keep in mind that SOXX holds TSM at a 4.64% weight, which makes a slice of this correlation mechanical rather than coincidental.
Are SOXX and TSM good diversifiers for each other?
To a limited degree. At 0.78 the two still catch most of the same waves, so the pair smooths returns a little without insulating either from a shared selloff.
FAQ
What is the correlation between SOXX and TSM?
The SOXX/TSM correlation stands at 0.78 on a 3-year window (1 year: 0.77, 5 years: 0.77), computed from weekly returns as of 2026-08-27.
Is TSM a good diversifier for SOXX?
To a limited degree. At 0.78 the two still catch most of the same waves, so the pair smooths returns a little without insulating either from a shared selloff.
What does a correlation of 0.78 mean?
A reading of 0.78 sits on a scale from −1 (opposite moves) through 0 (unrelated) to +1 (identical moves). Correlation captures direction, not magnitude or performance.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/soxx-vs-tsm.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/soxx-vs-tsm/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: SOXX correlations · TSM correlations
