FXY vs VYM
Invesco CurrencyShares Japanese Yen Trust vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. VYM delivered stronger 1-year returns. VYM offers more diversification with 613 holdings.
Side-by-Side Comparison
| Metric | FXY | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.40% | 0.04% | |
| AUM | $448M | $81.6B | |
| Dividend Yield | 0.00% | 2.24% | |
| Holdings | 3 | 613 | |
| YTD Return | -1.47% | +14.87% | |
| 1Y Return | -6.99% | +21.39% | |
| 3Y Return (annualized) | -2.84% | +18.69% | |
| 5Y Return (annualized) | -7.56% | +11.98% | |
| Volatility (annualized) | 9.6% | 14.5% | |
| Max Drawdown | -57.0% | -58.8% | |
| Fund Family | Invesco (US) | Vanguard (US) | |
| Category | Alternative | Equity | |
| Inception | Feb 12, 2007 | Nov 10, 2006 |
FXY vs VYM Performance
Invesco CurrencyShares Japanese Yen Trust (FXY) is a ETF from Invesco (US) and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year FXY returned -6.99% while VYM returned +21.39%. Year to date, FXY is down 1.47% versus a gain of 14.87% for VYM.
Over three years, FXY compounded at -2.84% per year against +18.69% for VYM; over five years the annualized figures are -7.56% and +11.98% respectively. Across the full 20-year window we track, VYM has the edge at +7.00% annualized vs -1.82%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VYM has been the more volatile fund, with annualized monthly volatility of 14.5% compared with 9.6% 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 -58.8% for VYM. 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 -0.04. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
FXY charges 0.40% per year while VYM charges 0.04%. On a $10,000 position that is $40 vs $4 annually, a gap of $36 per year that compounds over a long holding period. On income, FXY currently yields 0.00% against 2.24% for VYM.
Frequently Asked Questions
Which is cheaper, FXY or VYM?
FXY has an expense ratio of 0.40% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $36 per year of difference.
Which performed better, FXY or VYM?
Over the past year FXY returned -6.99% vs +21.39% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (20 years), FXY annualized -1.82% vs +7.00% for VYM. Past performance does not guarantee future results.
Which is riskier, FXY or VYM?
VYM has been the more volatile fund at 14.5% annualized versus 9.6% for FXY. Worst drawdown: FXY -57.0% vs VYM -58.8%.
Should I hold both FXY and VYM?
FXY and VYM have a monthly-return correlation of -0.04, so combining them can provide real diversification depending on your allocation goals.
Which pays a higher dividend, FXY or VYM?
FXY yields 0.00% while VYM yields 2.24%, so VYM currently pays the higher dividend yield.
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