FXB vs VTI
Invesco CurrencyShares British Pound Sterling 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 | FXB | VTI | Winner |
|---|---|---|---|
| Expense Ratio | 0.40% | 0.03% | |
| AUM | $64M | $663.5B | |
| Dividend Yield | 2.22% | 1.07% | |
| Holdings | 2 | 3,543 | |
| YTD Return | +1.45% | +13.87% | |
| 1Y Return | +2.58% | +23.31% | |
| 3Y Return (annualized) | +4.86% | +21.17% | |
| 5Y Return (annualized) | +1.40% | +12.23% | |
| Volatility (annualized) | 8.6% | 15.3% | |
| Max Drawdown | -51.3% | -56.6% | |
| Fund Family | Invesco (US) | Vanguard (US) | |
| Category | Alternative | Equity | |
| Inception | Jun 21, 2006 | May 24, 2001 |
FXB vs VTI Performance
Invesco CurrencyShares British Pound Sterling Trust (FXB) is a ETF from Invesco (US) and Vanguard Total Stock Market ETF (VTI) is a ETF from Vanguard (US). Over the past year FXB returned +2.58% while VTI returned +23.31%. Year to date, FXB is up 1.45% versus a gain of 13.87% for VTI.
Over three years, FXB compounded at +4.86% per year against +21.17% for VTI; over five years the annualized figures are +1.40% and +12.23% respectively. Across the full 20-year window we track, VTI has the edge at +8.13% annualized vs -1.19%. 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 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 -56.6% 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 0.49. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
FXB 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, FXB currently yields 2.22% against 1.07% for VTI.
Frequently Asked Questions
Which is cheaper, FXB or VTI?
FXB 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, FXB or VTI?
Over the past year FXB returned +2.58% vs +23.31% for VTI, so VTI leads on 1-year performance. Over the longest common window we track (20 years), FXB annualized -1.19% vs +8.13% for VTI. Past performance does not guarantee future results.
Which is riskier, FXB or VTI?
VTI has been the more volatile fund at 15.3% annualized versus 8.6% for FXB. Worst drawdown: FXB -51.3% vs VTI -56.6%.
Should I hold both FXB and VTI?
FXB and VTI have a monthly-return correlation of 0.49, so combining them can provide real diversification depending on your allocation goals.
Which pays a higher dividend, FXB or VTI?
FXB yields 2.22% while VTI yields 1.07%, so FXB currently pays the higher dividend yield.
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