FXE vs SPY
Invesco CurrencyShares Euro Currency 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 | FXE | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.40% | 0.09% | |
| AUM | $336M | $789.1B | |
| Dividend Yield | 0.74% | 1.01% | |
| Holdings | 2 | 505 | |
| YTD Return | -1.08% | +13.75% | |
| 1Y Return | +0.16% | +22.91% | |
| 3Y Return (annualized) | +3.40% | +21.67% | |
| 5Y Return (annualized) | +0.46% | +13.32% | |
| Volatility (annualized) | 9.1% | 15.3% | |
| Max Drawdown | -44.7% | -56.5% | |
| Fund Family | Invesco (US) | State Street Investment Management | |
| Category | Alternative | Equity | |
| Inception | Dec 9, 2005 | Jan 22, 1993 |
FXE vs SPY Performance
Invesco CurrencyShares Euro Currency Trust (FXE) 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 FXE returned +0.16% while SPY returned +22.91%. Year to date, FXE is down 1.08% versus a gain of 13.75% for SPY.
Over three years, FXE compounded at +3.40% per year against +21.67% for SPY; over five years the annualized figures are +0.46% and +13.32% respectively. Across the full 21-year window we track, SPY has the edge at +8.85% annualized vs -0.31%. 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 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 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 0.40. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
FXE charges 0.40% per year while 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, FXE currently yields 0.74% against 1.01% for SPY.
Frequently Asked Questions
Which is cheaper, FXE or SPY?
FXE 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, FXE or SPY?
Over the past year FXE returned +0.16% vs +22.91% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (21 years), FXE annualized -0.31% vs +8.85% for SPY. Past performance does not guarantee future results.
Which is riskier, FXE or SPY?
SPY has been the more volatile fund at 15.3% annualized versus 9.1% for FXE. Worst drawdown: FXE -44.7% vs SPY -56.5%.
Should I hold both FXE and SPY?
FXE and SPY 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 SPY?
FXE yields 0.74% while SPY yields 1.01%, so SPY currently pays the higher dividend yield.
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