FXY vs VOO
Invesco CurrencyShares Japanese Yen Trust vs Vanguard S&P 500 ETF
Quick Verdict
VOO has a lower expense ratio. VOO delivered stronger 1-year returns. VOO offers more diversification with 505 holdings.
Side-by-Side Comparison
| Metric | FXY | VOO | Winner |
|---|---|---|---|
| Expense Ratio | 0.40% | 0.03% | |
| AUM | $434M | $979.0B | |
| Dividend Yield | 0.00% | 1.09% | |
| Holdings | 1 | 509 | |
| YTD Return | -1.83% | +13.72% | |
| 1Y Return | -7.66% | +21.63% | |
| 3Y Return (annualized) | -3.46% | +21.55% | |
| 5Y Return (annualized) | -7.56% | +13.26% | |
| Volatility (annualized) | 9.7% | 14.1% | |
| Max Drawdown | -57.0% | -34.3% | |
| Fund Family | Invesco (US) | Vanguard (US) | |
| Category | Alternative | Equity | |
| Inception | Feb 12, 2007 | Sep 7, 2010 |
FXY vs VOO Performance
Invesco CurrencyShares Japanese Yen Trust (FXY) is a ETF from Invesco (US) and Vanguard S&P 500 ETF (VOO) is a ETF from Vanguard (US). Over the past year FXY returned -7.66% while VOO returned +21.63%. Year to date, FXY is down 1.83% versus a gain of 13.72% for VOO.
Over three years, FXY compounded at -3.46% per year against +21.55% for VOO; over five years the annualized figures are -7.56% and +13.26% respectively. Across the full 16-year window we track, VOO has the edge at +13.56% annualized vs -1.84%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VOO has been the more volatile fund, with annualized monthly volatility of 14.1% 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 -34.3% for VOO. 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 0.01. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
FXY charges 0.40% per year while VOO 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, FXY currently yields 0.00% against 1.09% for VOO.
Frequently Asked Questions
Which is cheaper, FXY or VOO?
FXY has an expense ratio of 0.40% while VOO charges 0.03%. VOO is the cheaper option. On a $10,000 investment, that is $37 per year of difference.
Which performed better, FXY or VOO?
Over the past year FXY returned -7.66% vs +21.63% for VOO, so VOO leads on 1-year performance. Over the longest common window we track (16 years), FXY annualized -1.84% vs +13.56% for VOO. Past performance does not guarantee future results.
Which is riskier, FXY or VOO?
VOO has been the more volatile fund at 14.1% annualized versus 9.7% for FXY. Worst drawdown: FXY -57.0% vs VOO -34.3%.
Should I hold both FXY and VOO?
FXY and VOO have a monthly-return correlation of 0.01, so combining them can provide real diversification depending on your allocation goals.
Which pays a higher dividend, FXY or VOO?
FXY yields 0.00% while VOO yields 1.09%, so VOO currently pays the higher dividend yield.
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