FXA vs VTI
Invesco CurrencyShares Australian Dollar Trust vs Vanguard Total Stock Market ETF
Quick Verdict
VTI has a lower expense ratio. VTI delivered stronger 1-year returns. VTI offers more diversification with 2783 holdings.
Side-by-Side Comparison
| Metric | FXA | VTI | Winner |
|---|---|---|---|
| Expense Ratio | 0.40% | 0.03% | |
| AUM | $97M | $663.5B | |
| Dividend Yield | 0.97% | 1.07% | |
| Holdings | 2 | 3,543 | |
| YTD Return | +6.05% | +14.22% | |
| 1Y Return | +9.19% | +22.19% | |
| 3Y Return (annualized) | +4.14% | +21.27% | |
| 5Y Return (annualized) | +0.03% | +12.23% | |
| Volatility (annualized) | 12.3% | 15.3% | |
| Max Drawdown | -47.9% | -56.6% | |
| Fund Family | Invesco (US) | Vanguard (US) | |
| Category | Alternative | Equity | |
| Inception | Jun 21, 2006 | May 24, 2001 |
FXA vs VTI Performance
Invesco CurrencyShares Australian Dollar Trust (FXA) is a ETF from Invesco (US) and Vanguard Total Stock Market ETF (VTI) is a ETF from Vanguard (US). Over the past year FXA returned +9.19% while VTI returned +22.19%. Year to date, FXA is up 6.05% versus a gain of 14.22% for VTI.
Over three years, FXA compounded at +4.14% per year against +21.27% for VTI; over five years the annualized figures are +0.03% and +12.23% respectively. Across the full 20-year window we track, VTI has the edge at +8.14% annualized vs -0.02%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VTI has been the more volatile fund, with annualized monthly volatility of 15.3% 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 -56.6% for VTI. 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 0.60. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
FXA charges 0.40% per year while VTI 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 1.07% for VTI.
Frequently Asked Questions
Which is cheaper, FXA or VTI?
FXA has an expense ratio of 0.40% while VTI charges 0.03%. VTI is the cheaper option. On a $10,000 investment, that is $37 per year of difference.
Which performed better, FXA or VTI?
Over the past year FXA returned +9.19% vs +22.19% for VTI, so VTI leads on 1-year performance. Over the longest common window we track (20 years), FXA annualized -0.02% vs +8.14% for VTI. Past performance does not guarantee future results.
Which is riskier, FXA or VTI?
VTI has been the more volatile fund at 15.3% annualized versus 12.3% for FXA. Worst drawdown: FXA -47.9% vs VTI -56.6%.
Should I hold both FXA and VTI?
FXA and VTI have a monthly-return correlation of 0.60, so combining them can provide real diversification depending on your allocation goals.
Which pays a higher dividend, FXA or VTI?
FXA yields 0.97% while VTI yields 1.07%, so VTI currently pays the higher dividend yield.
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