# How Toyota Motor (TM) compares with the whole market and its popular alternatives

> Source: EasyCompare research, https://easycompare.io/research/tm
> Data as of October 20, 2026. Total returns include reinvested dividends. Past performance does not predict future results; nothing here is investment advice.

Built by QuantCommons' quantitative engine, this page is about relative opportunity, not data on TM alone. It places TM (Toyota Motor Corporation) against 18 popular alternatives, its neighboring categories and the entire market of over 10,000 U.S.-listed stocks and ETFs, and surfaces what has done better on consistent outperformance, return for the risk taken, behavior in real market crashes and diversification. The result is a clearer view of where TM stands in the market, and of the alternatives worth a closer look.

Period covered: TM's full trading record, from October 1986 through September 2026. All returns include reinvested dividends. Data as of October 20, 2026.

## Key findings

- **Right now:** TM has gone against the market, falling 7.1% over the past 6 months while the S&P 500 rose 9.1%. Its automobile peers split over the past 6 months: RACE (Ferrari) rose 8.6%, while STLA (Stellantis) fell 50.2%.
- **Stock or market?:** TM's 12.0% gain over the past 3 months far outran its industry: the consumer discretionary sector ETF XLY (State Street Consumer Discretionary Select Sector SPDR ETF) rose 1.0%. The S&P 500 rose 3.9%. Its automobile peers did not move as one over the past 3 months: HMC (Honda Motor) rose 21.6%, while TSLA (Tesla) rose 1.1%.
- **Past 1 to 3 years:** Over the past year, TM rose 1.5% against 15.8% for the S&P 500 and 17.9% for the Nasdaq 100. The same gap shows up over 3 years (24.1% against 89.3%). TM finished behind the S&P 500 in both 2024 and 2025.
- **Long term:** TM turned $10,000 into $22,900 over the past decade, against $42,100 in the S&P 500.
- **In a crash:** In the 2022 bear market, TM fell 36.8%, against 24.5% for the S&P 500. That was more than HMC (Honda Motor, 29.9%) but less than TSLA (Tesla, 45.4%).
- **Diversification:** TM is some diversification, but not a hedge: a correlation of 0.37 with the S&P 500 over 5 years and 0.36 with the total US market, less closely than 55% of stocks worth at least $300 million. Over 10 years, TM's beta versus the S&P 500 was 0.56: 62% of the S&P 500's gains in rising months and 72% of its losses in falling ones.
- **Better options**
  - **Popular alternatives:** GM (General Motors), BWA (BorgWarner) and ALV (Autoliv) were ahead of TM in most short and long periods.
  - **Nearby categories and themes:** ECL (Ecolab, specialty chemicals) earned more than TM with less volatility over the past 5 years: 6.7% a year at 24.1% volatility, against 5.0% a year at 27.0%.
  - **Whole market:** 741 of the 3,633 stocks and funds worth at least $500 million earned more than TM with less volatility over the past 5 years, among them VTI (Vanguard Morningstar Total Stock Market ETF), VOO (Vanguard S&P 500 ETF) and BRK-B (Berkshire Hathaway).

## How much would $10,000 in TM have grown?

This chart tracks a hypothetical $10,000 investment in TM over the past 29 years, with dividends reinvested, alongside the same amount in the S&P 500, investments that ended ahead of TM over the same span and TM's popular alternatives, among those that traded for the entire period.

- $10,000 invested in TM at the end of September 1997 would have grown to $55,911 by September 2026, less than the $132,907 it would have become in SPY, an S&P 500 fund.
- Five of the eight other investments on the chart ended ahead of TM, and SHW finished highest, at $512,273.

## TM at a glance

This section summarizes the key facts about the stock, its returns over periods from one to ten years and the risk it has carried, with dividends reinvested throughout.

- TM's deepest decline since it began trading in 1986 was 60.2%, from April 2000 to April 2003. It took about three years from the low to climb back to its old high.
- Over 29 full calendar years, TM's best was 1999, when it returned 84.4%, and its worst was 2008, when it lost 36.6%. It lost money in ten of those years.
- TM is 18.2% below its all-time high.

- Type: Stock, Consumer Discretionary (Auto - Manufacturers)
- Trading since: October 17, 1986
- Market value: $234B
- Volatility (5 years): 27.0%; Sharpe ratio: 0.32
- Worst decline ever: −60.2%, from April 25, 2000 to April 14, 2003; back at its high by December 21, 2005

| Period | TM total return |
| --- | --- |
| 1 month | +3.8% |
| 3 months | +12.0% |
| 6 months | −7.1% |
| year to date | −6.8% |
| 1 year | +1.5% |
| 3 years | +24.1% |
| 5 years | +27.8% |
| 10 years | +129% |

## TM against the whole market

Where TM ranks among every stock and fund, and what across the market has done better.

### How does TM rank among all stocks?

This section ranks TM on return, volatility, risk-adjusted return and worst decline against every stock worth at least $300 million with enough history.

- TM's worst decline of the past 10 years ranks in the top 4% of the 2,187 stocks worth at least $300 million, where the top fell the least.

| Measure | TM | Rank |
| --- | --- | --- |
| 1-year return | +1.5% | 1,927 of 3,287 (top 59%) |
| 3-year return | +24.1% | 1,950 of 3,017 (top 65%) |
| 5-year return | +27.8% | 1,362 of 2,893 (top 48%) |
| 10-year return | +129% | 1,188 of 2,202 (top 54%) |
| Volatility, 5 years | 27.0% | 482 of 2,893 (top 17%) |
| Sharpe ratio, 5 years | 0.32 | 1,491 of 2,893 (top 52%) |
| Worst decline, past 10 years | −36.8% | 83 of 2,187 (top 4%) |

### What has beaten TM on both return and risk?

Each dot is an investment, placed by how much it earned a year over the past 5 years (higher is better) and how much its price swung, its volatility (further left is calmer).

- 178 stocks and 563 ETFs worth at least $500 million sit in the green region: each earned more than TM over the past 5 years with smaller price swings. That is 20% of the 3,633 screened.
- Among those with at least half TM's swings, CAH has the best return for its risk: 42.1% a year at 24.7% volatility, 8% less than TM's 27.0%, and a Sharpe ratio (return above cash per unit of volatility) of 1.55 against 0.32 for TM.
- None of TM's popular alternatives made it, but ECL (specialty chemicals) did: 6.7% a year at 24.1% volatility, 11% less than TM's 27.0%.

### Is there a better investment than TM?

The table below lists investments that beat TM over the past 5 years on at least one of these measures: a higher annual return with lower volatility, a higher annual return at similar volatility, a similar return with lower volatility, a higher Sharpe ratio with a smaller worst decline, a higher total return in most periods from 3 months to 10 years, or smaller losses in recent market crashes.

- Among TM's popular alternatives, GM, BWA and ALV were ahead of TM in most short and long periods.
- Looking beyond its popular alternatives, ECL (specialty chemicals) earned more than TM with less volatility over the past 5 years: 6.7% a year at 24.1% volatility, against 5.0% a year at 27.0%.
- Across the whole market, 741 of the 3,633 stocks and funds worth at least $500 million earned more than TM with less volatility over the past 5 years, among them VTI, VOO and BRK-B.

The 15 strongest of 741 investments that beat TM over the past 5 years, out of 3,633 stocks and funds worth at least $500 million.

| Investment | Group | Annual return (5 years) | Volatility | Sharpe | Worst decline (10 years) | 10Y return | Correlation with TM | Better on |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| TM: Toyota Motor Corporation (this page) |  | +5.0% | 27.0% | 0.32 | −36.8% | +129% |  |  |
| [BRK-B](https://easycompare.io/research/brk-b): Berkshire Hathaway Inc. | Insurance | +13.4% | 17.1% | 0.82 | −29.6% | +274% | 0.34 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods |
| [JNJ](https://easycompare.io/research/jnj): Johnson & Johnson | Pharmaceuticals | +12.7% | 17.9% | 0.76 | −27.4% | +196% | 0.16 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods |
| BALT: Innovator Defined Wealth Shield ETF | Crypto | +6.3% | 3.3% | 1.85 | −4.9% | — | 0.31 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods |
| [COST](https://easycompare.io/research/cost): Costco Wholesale Corporation | Discount Retail | +17.4% | 22.9% | 0.82 | −31.4% | +685% | 0.29 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods |
| [NVS](https://easycompare.io/research/nvs): Novartis AG | Pharmaceuticals | +17.1% | 20.7% | 0.87 | −26.8% | +226% | 0.22 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods |
| [AMGN](https://easycompare.io/research/amgn): Amgen Inc. | Biotechnology | +19.6% | 24.9% | 0.85 | −24.9% | +266% | 0.16 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods |
| [GILD](https://easycompare.io/research/gild): Gilead Sciences, Inc. | Biotechnology | +22.8% | 24.9% | 0.95 | −30.5% | +200% | 0.11 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods |
| [PGR](https://easycompare.io/research/pgr): The Progressive Corporation | Property & Casualty Insurance | +21.3% | 25.6% | 0.89 | −30.3% | +816% | 0.04 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods |
| [VIG](https://easycompare.io/research/vig): Vanguard Dividend Appreciation ETF | US Dividend Equity | +10.4% | 14.1% | 0.78 | −31.7% | +258% | 0.35 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods |
| [MNST](https://easycompare.io/research/mnst): Monster Beverage Corporation | Food & Beverages | +17.2% | 24.9% | 0.77 | −30.4% | +285% | 0.17 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods |
| [DFAC](https://easycompare.io/research/dfac): Dimensional - US Core Equity 2 ETF | US Total Market | +11.4% | 17.0% | 0.72 | −23.1% | — | 0.35 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods |
| PJUL: Innovator U.S. Equity Power Buffer ETF | Broad Market | +10.5% | 8.6% | 1.20 | −18.2% | — | 0.37 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods |
| [WM](https://easycompare.io/research/wm): Waste Management, Inc. | Environmental Services | +9.3% | 19.2% | 0.56 | −30.1% | +344% | 0.18 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods |
| FJAN: FT Vest U.S. Equity Buffer ETF - January | Multi-Asset | +11.1% | 10.5% | 1.05 | −13.6% | — | 0.44 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods |
| [FAST](https://easycompare.io/research/fast): Fastenal Company | Industrial Distribution | +15.8% | 24.6% | 0.72 | −30.7% | +576% | 0.20 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods |

## TM against its popular alternatives

The investments people most often weigh against TM, compared period by period and year by year.

### How do TM's risk and return compare with its alternatives?

This map plots each investment's annual return over the past 5 years against its volatility, the size of its typical price swings.

- None of the 17 popular alternatives earned more than TM over the past 5 years with smaller price swings, so every higher return on the map came with a bumpier ride.
- 11 of the 17 popular alternatives earned less than TM over the past 5 years while swinging more, the weaker corner of the map.
- Over the past 5 years, TM returned 5.0% a year, less than the S&P 500's 12.7%, with higher volatility (27.0% against 17.1%).

### Has TM consistently beaten its popular alternatives?

This section compares TM with the investments people most often weigh against it, checking each one over eight periods from one month to ten years.

- Three of the 18 popular alternatives, GM, BWA and ALV, outperformed TM in at least 3 of 5 short-term and 2 of 3 long-term timeframes.
- TSLA outperformed TM over all three long-term periods but in only one of the five short-term ones, so TM has had the better of it lately.

| Investment | 1Y return | 3Y return | 5Y return | 10Y return | Periods ahead of TM | Verdict | Sharpe |
| --- | --- | --- | --- | --- | --- | --- | --- |
| TM: Toyota Motor Corporation (this page) | +1.5% | +24.1% | +27.8% | +129% |  |  | 0.32 |
| [GM](https://easycompare.io/research/gm): General Motors Company | +34.0% | +168% | +39.5% | +193% | 3/5 short-term, 3/3 long-term | consistent | 0.36 |
| BWA: BorgWarner Inc. | +37.9% | +57.7% | +55.9% | +121% | 3/5 short-term, 2/3 long-term | consistent | 0.43 |
| ALV: Autoliv, Inc. | +2.7% | +32.1% | +42.4% | +111% | 3/5 short-term, 2/3 long-term | consistent | 0.38 |
| [RACE](https://easycompare.io/research/race): Ferrari N.V. | +1.6% | +36.1% | +86.6% | +711% | 2/5 short-term, 3/3 long-term |  | 0.57 |
| [TSLA](https://easycompare.io/research/tsla): Tesla, Inc. | −16.5% | +76.3% | +29.5% | +2,716% | 1/5 short-term, 3/3 long-term |  | 0.39 |
| [HMC](https://easycompare.io/research/hmc): Honda Motor Co., Ltd. | +12.4% | +17.7% | +34.5% | +63.3% | 5/5 short-term, 1/3 long-term |  | 0.35 |
| [F](https://easycompare.io/research/f): Ford Motor Company | +6.0% | +25.9% | +3.0% | +71.8% | 3/5 short-term, 1/3 long-term |  | 0.21 |
| LEA: Lear Corporation | +24.2% | −1.9% | −22.5% | +26.2% | 3/5 short-term, 0/3 long-term |  | 0.02 |
| STLA: Stellantis N.V. | −59.5% | −73.3% | −69.7% | +39.2% | 0/5 short-term, 0/3 long-term |  | -0.35 |
| APTV: Aptiv PLC | −46.0% | −51.0% | −73.3% | −10.6% | 0/5 short-term, 0/3 long-term |  | -0.43 |
| GT: The Goodyear Tire & Rubber Company | −39.8% | −65.5% | −78.5% | −85.4% | 0/5 short-term, 0/3 long-term |  | -0.34 |
| LCID: Lucid Group, Inc. | −83.6% | −92.4% | −98.7% | — | 0/5 short-term, 0/3 long-term |  | -0.62 |
| LI: Li Auto Inc. | −47.0% | −62.6% | −61.8% | — | 0/5 short-term, 0/3 long-term |  | 0.00 |
| NIO: NIO Inc. | −51.4% | −54.7% | −91.4% | — | 0/5 short-term, 0/3 long-term |  | -0.34 |
| PSNY: Polestar Automotive Holding UK PLC | −85.1% | −94.7% | −98.8% | — | 0/5 short-term, 0/3 long-term |  | -0.67 |
| RIVN: Rivian Automotive, Inc. | −5.0% | −25.7% | — | — | 0/5 short-term, 0/3 long-term |  | — |
| VFS: VinFast Auto Ltd. | −12.5% | −46.7% | −70.6% | — | 0/5 short-term, 0/3 long-term |  | 0.26 |
| XPEV: XPeng Inc. | −53.8% | −26.2% | −76.9% | — | 0/5 short-term, 0/3 long-term |  | 0.00 |

### How did TM do year by year?

This table shows each investment's total return in every full calendar year since 1997, along with where TM ranked among its popular alternatives each year.

- Among its popular alternatives, RACE came out ahead of TM most often, in eight of the ten years both traded.
- TM finished ahead of the S&P 500 in ten of its 29 full calendar years, and behind it in each of the last two.
- Ranked against its popular alternatives each year, TM finished in the top quarter in seven of 29 years and in the bottom quarter in five. In 2025, it ranked 10 of 19.

| Year | TM | SPY |
| --- | --- | --- |
| 2025 | +13.8% | +17.7% |
| 2024 | +8.8% | +24.9% |
| 2023 | +38.2% | +26.2% |
| 2022 | −24.4% | −18.2% |
| 2021 | +23.2% | +28.7% |
| 2020 | +13.6% | +18.3% |
| 2019 | +24.9% | +31.2% |
| 2018 | −5.8% | −4.6% |
| 2017 | +12.1% | +21.7% |
| 2016 | −1.5% | +12.0% |

## Risk and diversification

How TM has fallen, how it held up in crashes beside the S&P 500 and its popular alternatives, and what moves independently of it.

### What were TM's worst declines?

A drawdown is the decline from a peak to the lowest point before a new high.

- In all four of TM's worst declines, the S&P 500 held up better over the same dates.
- Not every decline was the market's doing: TM fell 36.3% from October 1997 to September 1998, while the S&P 500 rose 9.3%.
- The slowest recovery came after TM fell 56.1% from January 2007 to March 2009; it did not regain that peak until May 2013, four years later.

| Decline | Peak | Low | Back at the high | SPY over the same dates | Market event |
| --- | --- | --- | --- | --- | --- |
| −60.2% | April 25, 2000 | April 14, 2003 | December 21, 2005 | −37.5% | dot-com bust |
| −56.1% | January 4, 2007 | March 9, 2009 | May 13, 2013 | −49.9% | 2008 financial crisis |
| −54.6% | July 28, 1988 | March 17, 1992 | May 31, 1994 | — |  |
| −36.8% | January 13, 2022 | September 30, 2022 | January 19, 2024 | −22.2% | 2022 bear market |
| −36.3% | October 17, 1997 | September 17, 1998 | June 30, 1999 | +9.3% |  |

### How did TM do in stock market crashes?

This section measures how far TM, the S&P 500 and each alternative fell from peak to trough during every major market crash since 2000.

- Among its popular alternatives, VFS held up best, falling less than TM in all two crashes they both traded through.
- TM fell less than the S&P 500 in six of the ten crashes it has traded through. The clearest case was the Covid crash, when TM fell 22.0% and the S&P 500 fell 33.7%.

| Crash | Dates | TM fall | SPY fall |
| --- | --- | --- | --- |
| Dot-com bust | March 10, 2000 to October 9, 2002 | −56.4% | −47.5% |
| Global financial crisis | October 9, 2007 to March 9, 2009 | −48.9% | −55.2% |
| Flash crash | May 6, 2010 to May 7, 2010 | −0.3% | −1.5% |
| Euro debt crisis | July 22, 2011 to October 3, 2011 | −21.2% | −17.9% |
| China devaluation & oil rout | August 10, 2015 to February 11, 2016 | −18.7% | −12.8% |
| Volmageddon | February 2, 2018 to February 9, 2018 | −3.4% | −6.5% |
| Q4 2018 selloff | September 21, 2018 to December 24, 2018 | −11.1% | −19.3% |
| COVID crash | February 19, 2020 to March 23, 2020 | −22.0% | −33.7% |
| 2022 bear market | January 4, 2022 to October 12, 2022 | −36.8% | −24.5% |
| SVB / regional bank stress | March 8, 2023 to March 13, 2023 | −1.9% | −3.4% |

### How closely does TM move with the S&P 500?

Upside capture measures how much of the S&P 500's gains an investment kept in the months the market rose, and downside capture how much of its losses it took in the months the market fell.

- Over the past 10 years, TM captured 62% of the S&P 500's gains in rising months and 72% of its losses in falling months, with a beta of 0.56. Its share of the market's losses was slightly larger than its share of the gains.
- Only RACE and TSLA had a higher capture ratio (upside capture divided by downside capture) than TM's 0.86, out of 11 popular alternatives with the same record.
- RACE took just 56% of the S&P 500's losses, against 72% for TM, while still keeping 101% of its gains.

Measured over the past 10 years of monthly returns against SPY.

| Investment | Upside capture | Downside capture | Beta |
| --- | --- | --- | --- |
| TM: Toyota Motor Corporation (this page) | 62.0% | 72.0% | 0.56 |
| [GM](https://easycompare.io/research/gm): General Motors Company | 107% | 135% | 1.31 |
| BWA: BorgWarner Inc. | 109% | 157% | 1.31 |
| ALV: Autoliv, Inc. | 109% | 169% | 1.60 |
| [RACE](https://easycompare.io/research/race): Ferrari N.V. | 101% | 56.0% | 0.92 |
| [TSLA](https://easycompare.io/research/tsla): Tesla, Inc. | 182% | 129% | 1.91 |
| [HMC](https://easycompare.io/research/hmc): Honda Motor Co., Ltd. | 51.0% | 71.0% | 0.62 |
| [F](https://easycompare.io/research/f): Ford Motor Company | 105% | 167% | 1.51 |
| LEA: Lear Corporation | 91.0% | 165% | 1.40 |
| STLA: Stellantis N.V. | 124% | 215% | 1.61 |
| APTV: Aptiv PLC | 106% | 219% | 1.80 |
| GT: The Goodyear Tire & Rubber Company | 77.0% | 263% | 1.63 |

### What diversifies TM?

Correlation measures how closely two investments move together, on a scale from 1 (in lockstep) through 0 (unrelated) to -1 (in opposite directions).

- Moving a fifth of the money in TM into EMLP would have cut the portfolio's volatility by 17% over the past 5 years and raised its annual return (+3.6% for TM alone, +6.4% for the mix).
- Among large ETFs, EMLP, HDV and SMH have moved largely independently of TM over the past 5 years, with correlations of 0.34 or lower, and each still earned a positive 5-year return.
- MCK made money in seven of the ten calendar years in which TM lost money.

| Investment | Correlation with TM | 5Y return | Volatility | Sharpe | Rose in TM's 10 down years |
| --- | --- | --- | --- | --- | --- |
| EMLP: First Trust North American Energy Infrastructure Fund | 0.20 | +101% | 14.5% | 1.04 | 2 of 10 |
| HDV: iShares Core High Dividend ETF | 0.34 | +83.3% | 13.0% | 1.00 | 2 of 10 |
| [SMH](https://easycompare.io/research/smh): VanEck Semiconductor ETF | 0.20 | +323% | 36.9% | 0.97 | 4 of 10 |
| [GLD](https://easycompare.io/research/gld): SPDR Gold Shares | 0.27 | +126% | 18.9% | 0.96 | 5 of 10 |
| SPMO: Invesco S&P 500 Momentum ETF | 0.17 | +136% | 20.8% | 0.93 | 1 of 10 |
| [XLE](https://easycompare.io/research/xle): State Street Energy Select Sector SPDR ETF | 0.26 | +177% | 25.5% | 0.93 | 6 of 10 |
| DFIV: Dimensional - International Value ETF | 0.48 | +99.4% | 16.4% | 0.93 | 0 of 10 |
| [VTV](https://easycompare.io/research/vtv): Vanguard Morningstar Value ETF | 0.32 | +76.6% | 13.7% | 0.90 | 3 of 10 |

## Common questions

### What was TM's worst drawdown?

TM's deepest decline since it began trading in 1986 was 60.2%, from April 2000 to April 2003. It took about three years from the low to climb back to its old high.

### What were TM's best and worst years?

Over 29 full calendar years, TM's best year was 1999, when it returned 84.4%. Its worst was 2008, with a return of -36.6%.

### Is there a better investment than TM?

Among TM's popular alternatives, GM, BWA and ALV were ahead of TM in most short and long periods. Looking beyond its popular alternatives, ECL (specialty chemicals) earned more than TM with less volatility over the past 5 years: 6.7% a year at 24.1% volatility, against 5.0% a year at 27.0%.

### Is TM more volatile than the S&P 500?

Yes. TM's volatility over the past 5 years was 27.0%, 1.6 times the S&P 500's 17.1%. Volatility measures how widely returns swing around their average: in roughly two years out of three, TM's return lands within 27.0% of its average, either way. The higher it is, the rougher the ride and the harder it is to hold through a slump.

### What is TM's Sharpe ratio?

TM's Sharpe ratio over the past 5 years was 0.32, against 0.79 for the S&P 500, so TM earned less for each unit of risk than an index fund did. The Sharpe ratio is the return earned above cash for each unit of volatility: two investments with the same return are not equal if one got there with far bigger swings.

### How correlated is TM with the S&P 500?

Over the past 5 years, TM's monthly returns had a correlation of 0.37 with the S&P 500. Correlation runs from 1 (moving in lockstep) through 0 (unrelated) to −1 (moving in opposite directions). They are only loosely linked, which makes it a real diversifier next to an index fund. In the table, the correlation column measures each option against TM instead: the lower it is, the more that option would diversify a TM holding.

### What are the best alternatives to TM?

Of the 18 popular alternatives we compared, three outperformed TM in at least 3 of 5 short-term and 2 of 3 long-term timeframes, with dividends reinvested: GM, BWA and ALV.

### Did TM outperform the S&P 500?

TM finished ahead of the S&P 500 (SPY) in ten of 29 full calendar years. In 2025, it returned +13.8%, against +17.7% for the index.

### How did TM do in stock market crashes?

TM fell less than the S&P 500 (SPY) in six of the ten major crashes it has traded through, and further in four. The clearest case was the Covid crash, when TM fell 22.0% and the S&P 500 fell 33.7%.

### What diversifies TM?

These had a low correlation with TM over the past 5 years and still earned a positive 5-year return: among large ETFs, EMLP (correlation 0.20), HDV (correlation 0.34) and SMH (correlation 0.20); among large stocks, CAH (correlation 0.18), CLS (correlation 0.19) and FIX (correlation 0.21). A correlation near zero means the two have moved largely independently.

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- [Apple (AAPL) Performance, Alternatives and Market Rank](https://easycompare.io/research/aapl)
- [Alphabet (GOOG) Performance, Alternatives and Market Rank](https://easycompare.io/research/goog)
- [Microsoft (MSFT) Performance, Alternatives and Market Rank](https://easycompare.io/research/msft)
- [Amazon.com (AMZN) Performance, Alternatives and Market Rank](https://easycompare.io/research/amzn)
- [Vanguard Morningstar Total Stock Market ETF (VTI) Performance, Alternatives and Market Rank](https://easycompare.io/research/vti)

## Explore further

- Full page with charts: https://easycompare.io/research/tm
- All research pages: https://easycompare.io/llms.txt
- Compare the entire market against TM live: https://betterthanspy.com/?b=TM&utm_source=easycompare&utm_medium=research