FXA vs VYM
Invesco CurrencyShares Australian Dollar Trust vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. VYM delivered stronger 1-year returns. VYM offers more diversification with 558 holdings.
Side-by-Side Comparison
| Metric | FXA | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.40% | 0.04% | |
| AUM | $97M | $79.0B | |
| Dividend Yield | 0.97% | 2.86% | |
| Holdings | 2 | 568 | |
| YTD Return | +6.15% | +15.80% | |
| 1Y Return | +9.58% | +26.12% | |
| 3Y Return (annualized) | +3.88% | +18.25% | |
| 5Y Return (annualized) | +0.06% | +12.51% | |
| Volatility (annualized) | 12.3% | 14.6% | |
| Max Drawdown | -47.9% | -58.8% | |
| Fund Family | Invesco (US) | Vanguard (US) | |
| Category | Alternative | Equity | |
| Inception | Jun 21, 2006 | Nov 10, 2006 |
FXA vs VYM Performance
Invesco CurrencyShares Australian Dollar Trust (FXA) is a ETF from Invesco (US) and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year FXA returned +9.58% while VYM returned +26.12%. Year to date, FXA is up 6.15% versus a gain of 15.80% for VYM.
Over three years, FXA compounded at +3.88% per year against +18.25% for VYM; over five years the annualized figures are +0.06% and +12.51% respectively. Across the full 20-year window we track, VYM has the edge at +7.07% annualized vs -0.02%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VYM has been the more volatile fund, with annualized monthly volatility of 14.6% 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 -58.8% for VYM. 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 0.57. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
FXA charges 0.40% per year while VYM charges 0.04%. On a $10,000 position that is $40 vs $4 annually, a gap of $36 per year that compounds over a long holding period. On income, FXA currently yields 0.97% against 2.86% for VYM.
Frequently Asked Questions
Which is cheaper, FXA or VYM?
FXA has an expense ratio of 0.40% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $36 per year of difference.
Which performed better, FXA or VYM?
Over the past year FXA returned +9.58% vs +26.12% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (20 years), FXA annualized -0.02% vs +7.07% for VYM. Past performance does not guarantee future results.
Which is riskier, FXA or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 12.3% for FXA. Worst drawdown: FXA -47.9% vs VYM -58.8%.
Should I hold both FXA and VYM?
FXA and VYM have a monthly-return correlation of 0.57, so combining them can provide real diversification depending on your allocation goals.
Which pays a higher dividend, FXA or VYM?
FXA yields 0.97% while VYM yields 2.86%, so VYM currently pays the higher dividend yield.
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