FXA vs. GOVZ
Compare and contrast key facts about Invesco CurrencyShares Australian Dollar Trust (FXA) and iShares 25+ Year Treasury STRIPS Bond ETF (GOVZ).
FXA and GOVZ are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. FXA is a passively managed fund by Invesco that tracks the performance of the USD/AUD Exchange Rate. It was launched on Jun 21, 2006. GOVZ is a passively managed fund by iShares that tracks the performance of the ICE BofA Long US Treasury Principal STRIPS Index. It was launched on Sep 22, 2020. Both FXA and GOVZ are passive ETFs, meaning that they are not actively managed but aim to replicate the performance of the underlying index as closely as possible.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: FXA or GOVZ.
Key characteristics
| FXA | GOVZ | |
|---|---|---|
| YTD Return | -4.42% | -16.31% |
| 1Y Return | -0.88% | -19.38% |
| 3Y Return (Ann) | -5.25% | -17.33% |
| Sharpe Ratio | -0.07 | -0.88 |
| Daily Std Dev | 9.52% | 26.12% |
| Max Drawdown | -40.97% | -59.65% |
| Current Drawdown | -33.11% | -55.29% |
Correlation
The correlation between FXA and GOVZ is 0.07, 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
FXA vs. GOVZ - Performance Comparison
In the year-to-date period, FXA achieves a -4.42% return, which is significantly higher than GOVZ's -16.31% 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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FXA vs. GOVZ - Expense Ratio Comparison
FXA has a 0.40% expense ratio, which is higher than GOVZ's 0.15% expense ratio.
Risk-Adjusted Performance
FXA vs. GOVZ - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for Invesco CurrencyShares Australian Dollar Trust (FXA) and iShares 25+ Year Treasury STRIPS Bond ETF (GOVZ). 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.
Dividends
FXA vs. GOVZ - Dividend Comparison
FXA's dividend yield for the trailing twelve months is around 1.25%, less than GOVZ's 4.13% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
FXA Invesco CurrencyShares Australian Dollar Trust | 1.25% | 0.98% | 0.05% | 0.00% | 0.03% | 0.53% | 1.04% | 0.83% | 1.01% | 1.52% | 2.01% | 2.14% |
GOVZ iShares 25+ Year Treasury STRIPS Bond ETF | 4.13% | 3.84% | 3.69% | 1.76% | 0.39% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
Drawdowns
FXA vs. GOVZ - Drawdown Comparison
The maximum FXA drawdown since its inception was -40.97%, smaller than the maximum GOVZ drawdown of -59.65%. Use the drawdown chart below to compare losses from any high point for FXA and GOVZ. For additional features, visit the drawdowns tool.
Volatility
FXA vs. GOVZ - Volatility Comparison
The current volatility for Invesco CurrencyShares Australian Dollar Trust (FXA) is 3.15%, while iShares 25+ Year Treasury STRIPS Bond ETF (GOVZ) has a volatility of 5.94%. This indicates that FXA experiences smaller price fluctuations and is considered to be less risky than GOVZ based on this measure. The chart below showcases a comparison of their rolling one-month volatility.