ETFs with TSM: Investing in the Semiconductor Leader

TSM, or Taiwan Semiconductor Manufacturing Company, is a leader in the semiconductor industry and a popular stock among investors. TSM has consistently delivered strong financial performance, with net income increasing from $2.3 billion in 2015 to $14.3 billion in 2020.

TSM's success can be attributed to its dominant market position, with a global market share of around 50% in the foundry services segment. This market share has been steadily increasing over the years, driven by TSM's ability to innovate and adapt to changing market trends.

Investing in TSM through an ETF is a great way to gain exposure to the semiconductor industry without having to buy individual stocks.

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TSMC is the largest dedicated foundry in the semiconductor industry, producing 28 percent of the world's semiconductor excluding memory output value in 2023.

TSMC has become a technology leader, especially in "leading edge" chips, and is currently leading in the most advanced node, 3nm, with mass production of its 2nm node expected to start in 2025.

Apple is still TSMC's largest consumer, followed by Nvidia, and has been a major contributor to the company's success, particularly after choosing TSMC as its supplier in 2010.

Investing in TSMC can be done through funds like the Direxion Daily TSM Bull 2X Shares (TSMX) and the Direxion Daily TSM Bear 1X Shares (TSMZ), which seek to provide 200% daily leveraged investment results and daily inverse investment results, respectively.

Keep in mind that these funds come with increased volatility, which can affect investor returns, especially during periods of higher TSM volatility.

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TSMC, the Taiwan Semiconductor Manufacturing Company, has become the leading force in the semiconductor industry, especially in the "leading edge" chips. Dr. Morris Chang, the "father of semiconductors", was instrumental in founding the company.

The company's history is marked by a shift in the industry's focus from the USA to Asia, where high-quality labor and lower costs became a long-term advantage. TSMC has progressively become the technology leader of the industry.

Today, TSMC is leading in the most advanced node, 3nm, and is expected to start mass production of its 2nm node in 2025. It will likely be a tight competition with Samsung. The demand for the 2nm node is expected to be larger than 5nm and 3nm combined.

TSMC's largest consumer is still Apple, which has been a driving force in the industry's advancement and has paid for the associated massive R&D costs.

TSMC has been expanding its presence in the US, with plans to open a large foundry in Arizona since 2020, which has brought a total investment of $40B.

The company is facing challenges in finding adequately trained local workers, which is a significant issue for its American factories.

TSMC is working to overcome these challenges to meet its production goals, with the first fab in Arizona expected to start production in 2025.

The production yield in Phoenix is now higher than in Taiwan, which is a significant achievement for the company.

A second fab in Arizona is scheduled to start production in 2028, focusing on 3nm and 2nm process technology.

A third fab is also planned, which will focus on the 2nm process and beyond, with production expected to start by the end of the decade.

Investing in TSMC can be a smart move, especially with the right tools and knowledge. The Direxion Daily Bear ETF is one such tool that can help you navigate the market.

The Direxion Daily TSM Bear 1X Shares ETF has a record date of 12/23/2024. This is the date when the ETF will start tracking the inverse performance of the Taiwan Semiconductor Manufacturing Company (TSM) stock.

The pay date for the ETF is 12/31/2024, which is the date when the income dividend will be distributed to the shareholders. The income dividend for this ETF is 0.18554.

One thing to note is that the Direxion Daily Bear ETF does not have a short-term capital gain or long-term capital gain for the given record date.

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When choosing an ETF, consider the various options available.

The iShares TSM ETF offers a diversified portfolio of Taiwanese stocks, with a total of 101 holdings as of the last update.

Investors can select from a range of ETF options, including the Vanguard FTSE Developed Markets ETF, which tracks a similar index to the iShares TSM ETF.

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The pricing and performance of ETFs can be a bit overwhelming at first, but let's break it down. The NAV (Net Asset Value) and market price of an ETF can fluctuate daily, and it's essential to understand what these numbers mean.

For example, the NAV of TSMX as of 01/13/2025 is $12.47 for the 1-month period, while its market close is $12.48. This small difference might seem insignificant, but it's essential to keep an eye on these numbers.

TSMX has an inception date of 10/03/2024, and its expense ratio is 0.99% (Gross) and 0.97% (Net). The Net Expense Ratio includes management fees, other operating expenses, and Acquired Fund Fees and Expenses.

Here's a summary of the expense ratios for the mentioned ETFs:

Keep in mind that short-term performance is not a reliable indicator of a fund's future performance. It's essential to look at the bigger picture and consider the fund's long-term performance.

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The Direxion Daily Bull 2x Shares ETF is a popular choice for investors looking to amplify their gains. It's known for its high level of volatility.

The ETF's distribution record date is a crucial piece of information for investors. According to the data, the record date for this ETF is December 23, 2024.

The ex-dividend date, also known as the ex date, is another important date to keep in mind. In this case, it's also December 23, 2024.

The pay date for the distribution is December 31, 2024. This is the date when investors will receive their dividend payment.

Here's a breakdown of the distribution components: