FXY vs QQQ
Invesco CurrencyShares Japanese Yen Trust vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. QQQ offers more diversification with 108 holdings.
Side-by-Side Comparison
| Metric | FXY | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.40% | 0.18% | |
| AUM | $455M | $496.3B | |
| Dividend Yield | 0.00% | 0.44% | |
| Holdings | 3 | 108 | |
| YTD Return | -1.52% | +16.64% | |
| 1Y Return | -6.95% | +27.27% | |
| 3Y Return (annualized) | -3.25% | +25.96% | |
| 5Y Return (annualized) | -7.63% | +14.54% | |
| Volatility (annualized) | 9.7% | 30.6% | |
| Max Drawdown | -57.0% | -83.0% | |
| Fund Family | Invesco (US) | Invesco (US) | |
| Category | Alternative | Equity | |
| Inception | Feb 12, 2007 | Mar 10, 1999 |
FXY vs QQQ Performance
Invesco CurrencyShares Japanese Yen Trust (FXY) is a ETF from Invesco (US) and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year FXY returned -6.95% while QQQ returned +27.27%. Year to date, FXY is down 1.52% versus a gain of 16.64% for QQQ.
Over three years, FXY compounded at -3.25% per year against +25.96% for QQQ; over five years the annualized figures are -7.63% and +14.54% respectively. Across the full 20-year window we track, QQQ has the edge at +13.03% annualized vs -1.83%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 30.6% compared with 9.7% for FXY. 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 -57.0% for FXY and -83.0% for QQQ. 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 -0.09. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
FXY charges 0.40% per year while QQQ charges 0.18%. On a $10,000 position that is $40 vs $18 annually, a gap of $22 per year that compounds over a long holding period. On income, FXY currently yields 0.00% against 0.44% for QQQ.
Frequently Asked Questions
Which is cheaper, FXY or QQQ?
FXY has an expense ratio of 0.40% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $22 per year of difference.
Which performed better, FXY or QQQ?
Over the past year FXY returned -6.95% vs +27.27% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (20 years), FXY annualized -1.83% vs +13.03% for QQQ. Past performance does not guarantee future results.
Which is riskier, FXY or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 9.7% for FXY. Worst drawdown: FXY -57.0% vs QQQ -83.0%.
Should I hold both FXY and QQQ?
FXY and QQQ have a monthly-return correlation of -0.09, so combining them can provide real diversification depending on your allocation goals.
Which pays a higher dividend, FXY or QQQ?
FXY yields 0.00% while QQQ yields 0.44%, so QQQ currently pays the higher dividend yield.
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