FXB vs SPY
Invesco CurrencyShares British Pound Sterling Trust vs State Street SPDR S&P 500 ETF Trust
Quick Verdict
SPY has a lower expense ratio. SPY delivered stronger 1-year returns. SPY offers more diversification with 503 holdings.
Side-by-Side Comparison
| Metric | FXB | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.40% | 0.09% | |
| AUM | $64M | $789.1B | |
| Dividend Yield | 2.22% | 1.01% | |
| Holdings | 2 | 505 | |
| YTD Return | +1.45% | +13.75% | |
| 1Y Return | +2.58% | +22.91% | |
| 3Y Return (annualized) | +4.81% | +21.67% | |
| 5Y Return (annualized) | +1.44% | +13.32% | |
| Volatility (annualized) | 8.6% | 15.3% | |
| Max Drawdown | -51.3% | -56.5% | |
| Fund Family | Invesco (US) | State Street Investment Management | |
| Category | Alternative | Equity | |
| Inception | Jun 21, 2006 | Jan 22, 1993 |
FXB vs SPY Performance
Invesco CurrencyShares British Pound Sterling Trust (FXB) is a ETF from Invesco (US) and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year FXB returned +2.58% while SPY returned +22.91%. Year to date, FXB is up 1.45% versus a gain of 13.75% for SPY.
Over three years, FXB compounded at +4.81% per year against +21.67% for SPY; over five years the annualized figures are +1.44% and +13.32% respectively. Across the full 20-year window we track, SPY has the edge at +8.85% annualized vs -1.19%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SPY has been the more volatile fund, with annualized monthly volatility of 15.3% compared with 8.6% for FXB. 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 -51.3% for FXB and -56.5% for SPY. 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 0.50. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
FXB charges 0.40% per year while SPY charges 0.09%. On a $10,000 position that is $40 vs $9 annually, a gap of $31 per year that compounds over a long holding period. On income, FXB currently yields 2.22% against 1.01% for SPY.
Frequently Asked Questions
Which is cheaper, FXB or SPY?
FXB has an expense ratio of 0.40% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $31 per year of difference.
Which performed better, FXB or SPY?
Over the past year FXB returned +2.58% vs +22.91% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (20 years), FXB annualized -1.19% vs +8.85% for SPY. Past performance does not guarantee future results.
Which is riskier, FXB or SPY?
SPY has been the more volatile fund at 15.3% annualized versus 8.6% for FXB. Worst drawdown: FXB -51.3% vs SPY -56.5%.
Should I hold both FXB and SPY?
FXB and SPY have a monthly-return correlation of 0.50, so combining them can provide real diversification depending on your allocation goals.
Which pays a higher dividend, FXB or SPY?
FXB yields 2.22% while SPY yields 1.01%, so FXB currently pays the higher dividend yield.
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