FXE vs IVV

Quick Verdict

IVV has a lower expense ratio. IVV delivered stronger 1-year returns. IVV offers more diversification with 505 holdings.

Lower Fees: IVVHigher Returns: IVVMore Diversified: IVV

Side-by-Side Comparison

MetricFXEIVVWinner
Expense Ratio0.40%0.03%
AUM$336M$865.2B
Dividend Yield0.74%1.09%
Holdings2508
YTD Return-1.08%+13.43%
1Y Return+0.16%+22.61%
3Y Return (annualized)+3.40%+21.47%
5Y Return (annualized)+0.46%+13.26%
Volatility (annualized)9.1%15.1%
Max Drawdown-44.7%-56.5%
Fund FamilyInvesco (US)iShares by BlackRock (US)
CategoryAlternativeEquity
InceptionDec 9, 2005May 15, 2000

FXE vs IVV Performance

Invesco CurrencyShares Euro Currency Trust (FXE) 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 FXE returned +0.16% while IVV returned +22.61%. Year to date, FXE is down 1.08% versus a gain of 13.43% for IVV.

Over three years, FXE compounded at +3.40% per year against +21.47% for IVV; over five years the annualized figures are +0.46% and +13.26% respectively. Across the full 21-year window we track, IVV has the edge at +7.03% annualized vs -0.31%. 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 9.1% for FXE. 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 -44.7% for FXE 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 0.40. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

FXE 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, FXE currently yields 0.74% against 1.09% for IVV.

Frequently Asked Questions

Which is cheaper, FXE or IVV?

FXE 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, FXE or IVV?

Over the past year FXE returned +0.16% vs +22.61% for IVV, so IVV leads on 1-year performance. Over the longest common window we track (21 years), FXE annualized -0.31% vs +7.03% for IVV. Past performance does not guarantee future results.

Which is riskier, FXE or IVV?

IVV has been the more volatile fund at 15.1% annualized versus 9.1% for FXE. Worst drawdown: FXE -44.7% vs IVV -56.5%.

Should I hold both FXE and IVV?

FXE and IVV have a monthly-return correlation of 0.40, so combining them can provide real diversification depending on your allocation goals.

Which pays a higher dividend, FXE or IVV?

FXE yields 0.74% while IVV yields 1.09%, so IVV currently pays the higher dividend yield.

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