^N225 vs. SPY

Last updated Aug 1, 2026

^N225 (Nikkei 225) is an index, while SPY (State Street SPDR S&P 500 ETF) is S&P 500 fund tracking the S&P 500 Index. Over the past 10 years, ^N225 returned 14.20%/yr vs 20.30%/yr for SPY. Their 0.19 correlation means their historical movements had little consistent relationship.

Performance

^N225 vs. SPY - Performance Comparison

The chart below illustrates the hypothetical performance of a ¥10,000 investment in Nikkei 225 (^N225) and State Street SPDR S&P 500 ETF (SPY). The values are adjusted to include any dividend payments, if applicable.

Different Trading Currencies

^N225 is traded in JPY, while SPY is traded in USD. To make them comparable, the SPY values have been converted to JPY using the latest available exchange rates.

Returns By Period

In the year-to-date period, ^N225 achieves a 22.90% return, which is significantly higher than SPY's 10.56% return. Over the past 10 years, ^N225 has underperformed SPY with an annualized return of 14.20%, while SPY has yielded a comparatively higher 20.30% annualized return.

^N225

• 1D: 0.00%
• 1M: -9.99%
• 6M: 16.02%
• YTD: 22.90%
• 1Y: 51.64%
• 3Y*: 22.72%
• 5Y*: 17.79%
• 10Y*: 14.20%
• ALL TIME*: 5.91%

SPY

• 1D: -0.56%
• 1M: -1.96%
• 6M: 10.44%
• YTD: 10.56%
• 1Y: 29.80%
• 3Y*: 23.12%
• 5Y*: 21.21%
• 10Y*: 20.30%
• ALL TIME*: 12.59%

*Multi-year figures are annualized to reflect compound growth (CAGR)

Liquidity Comparison

Position	Avg. Volume Value (2W)	Avg. Volume Value (1M)	Avg. Volume Value (3M)
^N225 Nikkei 225	¥10.05T	¥10.42T	¥11.24T
SPY State Street SPDR S&P 500 ETF	¥6.04T	¥5.84T	¥6.30T

^N225 vs. SPY - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
^N225 Nikkei 225	22.90%	26.18%	19.22%	28.24%	-9.37%	4.91%	16.01%	18.20%	-12.08%	19.10%
SPY State Street SPDR S&P 500 ETF	10.56%	17.37%	39.35%	35.69%	-6.79%	43.49%	12.48%	29.95%	-7.08%	17.20%

Correlation

The correlation between ^N225 and SPY is 0.21, which is low. Their historical price movements had little consistent relationship.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	0.21
Correlation (3Y) Balances recent behavior with more history.	0.15
Correlation (5Y) Shows whether the relationship held over a longer period.	0.15
Correlation (10Y) Provides a long-term view across more market conditions.	0.18
Correlation (All Time) Calculated using the full available price history since Sep 19, 2007	0.19

Return for Risk

^N225 vs. SPY — Risk / Return Rank

Compare historical risk-adjusted metric ranks over the past 12 months.

^N225

^N225 Risk / Return Rank: 89
^N225 Sharpe Ratio Rank: 86
^N225 Sortino Ratio Rank: 87
^N225 Omega Ratio Rank: 87
^N225 Calmar Ratio Rank: 93
^N225 Martin Ratio Rank: 90

SPY

SPY Risk / Return Rank: 67
SPY Sharpe Ratio Rank: 67
SPY Sortino Ratio Rank: 64
SPY Omega Ratio Rank: 65
SPY Calmar Ratio Rank: 64
SPY Martin Ratio Rank: 76

The rank (0–100) uses a weighted average of the Sharpe, Sortino, Omega, Calmar, and Martin percentile ranks for the trailing 12 months. Higher means stronger historical risk-adjusted performance within the peer group.

^N225 vs. SPY - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Nikkei 225 (^N225) and State Street 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.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	^N225	SPY	Difference
Sharpe ratio: Return per unit of total volatility	1.89	1.72	+0.17
Sortino ratio: Return per unit of downside risk	2.59	2.28	+0.31
Omega ratio: Gain probability vs. loss probability	1.32	1.31	+0.01
Calmar ratio: Return relative to maximum drawdown	3.50	3.00	+0.50
Martin ratio: Return relative to average drawdown	11.33	11.39	-0.05

^N225 vs. SPY - Sharpe Ratio Comparison

The current ^N225 Sharpe Ratio is 1.89, which is comparable to the SPY Sharpe Ratio of 1.72. The chart below compares the historical Sharpe Ratios of ^N225 and SPY, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

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 -62.30%. Use the drawdown chart below to compare losses from any high point for ^N225 and SPY.

Drawdown Indicators

	^N225	SPY	Difference
Max Drawdown Largest peak-to-trough decline	-81.87%	-62.30%	-19.57%
Max Drawdown (1Y) Largest decline over 1 year	-15.11%	-8.31%	-6.80%
Max Drawdown (3Y) Largest decline over 3 years	-26.26%	-23.69%	-2.57%
Max Drawdown (5Y) Largest decline over 5 years	-26.26%	-23.69%	-2.57%
Max Drawdown (10Y) Largest decline over 10 years	-31.80%	-33.96%	+2.16%
Current Drawdown Current decline from peak	-14.51%	-3.90%	-10.61%
Average Drawdown Average peak-to-trough decline	-35.56%	-13.94%	-21.62%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.61%	2.22%	+2.39%

Volatility

^N225 vs. SPY - Volatility Comparison

Nikkei 225 (^N225) has a higher volatility of 9.26% compared to State Street SPDR S&P 500 ETF (SPY) at 3.48%. 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.

Volatility by Period

	^N225	SPY	Difference
Volatility (1M) Calculated over the trailing 1-month period	9.26%	3.48%	+5.78%
Volatility (6M) Calculated over the trailing 6-month period	23.36%	10.09%	+13.27%
Volatility (1Y) Calculated over the trailing 1-year period	28.09%	14.55%	+13.54%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	23.05%	20.06%	+2.99%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	20.98%	21.24%	-0.26%

Frequently Asked Questions

Can I hold both ^N225 and SPY in my portfolio?

^N225 and SPY have a correlation of 0.21, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, ^N225 or SPY?

^N225 has higher volatility (9.26%) compared to SPY (3.48%). In terms of maximum drawdown, ^N225 dropped -81.87% vs SPY's -62.30%.

Which has better risk-adjusted returns?

^N225 currently has the higher Sharpe Ratio (1.89 vs 1.72), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.