^N225 vs. SPY
Compare and contrast key facts about Nikkei 225 (^N225) and SPDR S&P 500 ETF (SPY).
SPY is a passively managed fund by State Street that tracks the performance of the S&P 500 Index. It was launched on Jan 22, 1993.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: ^N225 or SPY.
Key characteristics
| ^N225 | SPY | |
|---|---|---|
| YTD Return | 9.32% | 18.37% |
| 1Y Return | 10.29% | 26.96% |
| 3Y Return (Ann) | 6.16% | 9.40% |
| 5Y Return (Ann) | 11.00% | 15.01% |
| 10Y Return (Ann) | 8.83% | 12.90% |
| Sharpe Ratio | 0.42 | 2.14 |
| Daily Std Dev | 25.71% | 12.67% |
| Max Drawdown | -81.87% | -55.19% |
| Current Drawdown | -13.36% | -1.02% |
Correlation
The correlation between ^N225 and SPY is 0.04, which is considered to be low. This implies their price changes are not closely related. A low correlation is generally favorable for portfolio diversification, as it helps to reduce overall risk by spreading it across multiple assets with different performance patterns.
Performance
^N225 vs. SPY - Performance Comparison
In the year-to-date period, ^N225 achieves a 9.32% return, which is significantly lower than SPY's 18.37% return. Over the past 10 years, ^N225 has underperformed SPY with an annualized return of 8.83%, while SPY has yielded a comparatively higher 12.90% annualized return. The chart below displays the growth of a $10,000 investment in both assets, with all prices adjusted for splits and dividends.
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Risk-Adjusted Performance
^N225 vs. SPY - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for Nikkei 225 (^N225) and SPDR S&P 500 ETF (SPY). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.
Drawdowns
^N225 vs. SPY - Drawdown Comparison
The maximum ^N225 drawdown since its inception was -81.87%, which is greater than SPY's maximum drawdown of -55.19%. Use the drawdown chart below to compare losses from any high point for ^N225 and SPY. For additional features, visit the drawdowns tool.
Volatility
^N225 vs. SPY - Volatility Comparison
Nikkei 225 (^N225) has a higher volatility of 9.50% compared to SPDR S&P 500 ETF (SPY) at 3.91%. This indicates that ^N225's price experiences larger fluctuations and is considered to be riskier than SPY based on this measure. The chart below showcases a comparison of their rolling one-month volatility.