FXA vs IVV
Invesco CurrencyShares Australian Dollar Trust vs iShares Core S&P 500 ETF
Quick Verdict
IVV has a lower expense ratio. IVV delivered stronger 1-year returns. IVV offers more diversification with 505 holdings.
Side-by-Side Comparison
| Metric | FXA | IVV | Winner |
|---|---|---|---|
| Expense Ratio | 0.40% | 0.03% | |
| AUM | $97M | $865.2B | |
| Dividend Yield | 0.97% | 1.09% | |
| Holdings | 2 | 508 | |
| YTD Return | +6.01% | +13.43% | |
| 1Y Return | +9.50% | +22.61% | |
| 3Y Return (annualized) | +4.13% | +21.47% | |
| 5Y Return (annualized) | -0.10% | +13.26% | |
| Volatility (annualized) | 12.3% | 15.1% | |
| Max Drawdown | -47.9% | -56.5% | |
| Fund Family | Invesco (US) | iShares by BlackRock (US) | |
| Category | Alternative | Equity | |
| Inception | Jun 21, 2006 | May 15, 2000 |
FXA vs IVV Performance
Invesco CurrencyShares Australian Dollar Trust (FXA) is a ETF from Invesco (US) and iShares Core S&P 500 ETF (IVV) is a ETF from iShares by BlackRock (US). Over the past year FXA returned +9.50% while IVV returned +22.61%. Year to date, FXA is up 6.01% versus a gain of 13.43% for IVV.
Over three years, FXA compounded at +4.13% per year against +21.47% for IVV; over five years the annualized figures are -0.10% and +13.26% respectively. Across the full 20-year window we track, IVV has the edge at +7.03% annualized vs -0.03%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
IVV has been the more volatile fund, with annualized monthly volatility of 15.1% compared with 12.3% for FXA. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.
The deepest peak-to-trough decline in our data was -47.9% for FXA and -56.5% for IVV. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.
The two funds' monthly returns correlate at 0.59. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
FXA charges 0.40% per year while IVV charges 0.03%. On a $10,000 position that is $40 vs $3 annually, a gap of $37 per year that compounds over a long holding period. On income, FXA currently yields 0.97% against 1.09% for IVV.
Frequently Asked Questions
Which is cheaper, FXA or IVV?
FXA has an expense ratio of 0.40% while IVV charges 0.03%. IVV is the cheaper option. On a $10,000 investment, that is $37 per year of difference.
Which performed better, FXA or IVV?
Over the past year FXA returned +9.50% vs +22.61% for IVV, so IVV leads on 1-year performance. Over the longest common window we track (20 years), FXA annualized -0.03% vs +7.03% for IVV. Past performance does not guarantee future results.
Which is riskier, FXA or IVV?
IVV has been the more volatile fund at 15.1% annualized versus 12.3% for FXA. Worst drawdown: FXA -47.9% vs IVV -56.5%.
Should I hold both FXA and IVV?
FXA and IVV have a monthly-return correlation of 0.59, so combining them can provide real diversification depending on your allocation goals.
Which pays a higher dividend, FXA or IVV?
FXA yields 0.97% while IVV yields 1.09%, so IVV currently pays the higher dividend yield.
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