FXY vs SPY

Quick Verdict

SPY has a lower expense ratio. SPY delivered stronger 1-year returns. SPY offers more diversification with 503 holdings.

Lower Fees: SPYHigher Returns: SPYMore Diversified: SPY

Side-by-Side Comparison

MetricFXYSPYWinner
Expense Ratio0.40%0.09%
AUM$434M$789.1B
Dividend Yield0.00%1.01%
Holdings1505
YTD Return-1.81%+14.47%
1Y Return-7.86%+21.96%
3Y Return (annualized)-3.45%+21.70%
5Y Return (annualized)-7.69%+13.30%
Volatility (annualized)9.7%15.3%
Max Drawdown-57.0%-56.5%
Fund FamilyInvesco (US)State Street Investment Management
CategoryAlternativeEquity
InceptionFeb 12, 2007Jan 22, 1993

FXY vs SPY Performance

Invesco CurrencyShares Japanese Yen Trust (FXY) 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 FXY returned -7.86% while SPY returned +21.96%. Year to date, FXY is down 1.81% versus a gain of 14.47% for SPY.

Over three years, FXY compounded at -3.45% per year against +21.70% for SPY; over five years the annualized figures are -7.69% and +13.30% respectively. Across the full 20-year window we track, SPY has the edge at +8.87% annualized vs -1.84%. 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 9.7% 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 -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 -0.07. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

FXY 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, FXY currently yields 0.00% against 1.01% for SPY.

Frequently Asked Questions

Which is cheaper, FXY or SPY?

FXY 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, FXY or SPY?

Over the past year FXY returned -7.86% vs +21.96% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (20 years), FXY annualized -1.84% vs +8.87% for SPY. Past performance does not guarantee future results.

Which is riskier, FXY or SPY?

SPY has been the more volatile fund at 15.3% annualized versus 9.7% for FXY. Worst drawdown: FXY -57.0% vs SPY -56.5%.

Should I hold both FXY and SPY?

FXY and SPY have a monthly-return correlation of -0.07, so combining them can provide real diversification depending on your allocation goals.

Which pays a higher dividend, FXY or SPY?

FXY yields 0.00% while SPY yields 1.01%, so SPY currently pays the higher dividend yield.

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