FXA vs. VEA
FXA (Invesco CurrencyShares Australian Dollar Trust) and VEA (Vanguard FTSE Developed Markets ETF) are both exchange-traded funds - FXA is a Currency fund tracking the USD/AUD Exchange Rate, while VEA is a Foreign Large Cap Equities fund tracking the FTSE Developed All Cap ex US Index. Both are passively managed. Over the past 10 years, FXA returned 0.27%/yr vs 10.17%/yr for VEA. A 0.63 correlation means they provide meaningful diversification when combined. FXA charges 0.40%/yr vs 0.03%/yr for VEA.
Performance
FXA vs. VEA - Performance Comparison
Loading charts...
Returns By Period
In the year-to-date period, FXA achieves a 7.28% return, which is significantly lower than VEA's 14.92% return. Over the past 10 years, FXA has underperformed VEA with an annualized return of 0.27%, while VEA has yielded a comparatively higher 10.17% annualized return.
FXA
- 1D
- -0.71%
- 1M
- -0.48%
- YTD
- 7.28%
- 6M
- 8.49%
- 1Y
- 11.38%
- 3Y*
- 3.89%
- 5Y*
- -0.88%
- 10Y*
- 0.27%
VEA
- 1D
- -0.90%
- 1M
- 5.54%
- YTD
- 14.92%
- 6M
- 18.15%
- 1Y
- 32.48%
- 3Y*
- 19.77%
- 5Y*
- 9.60%
- 10Y*
- 10.17%
FXA vs. VEA - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
FXA Invesco CurrencyShares Australian Dollar Trust | 7.28% | 9.10% | -7.75% | 1.20% | -6.46% | -6.17% | 9.52% | 0.13% | -8.84% | 9.05% |
VEA Vanguard FTSE Developed Markets ETF | 14.92% | 35.16% | 3.15% | 17.93% | -15.34% | 11.66% | 9.71% | 22.62% | -14.75% | 26.42% |
Correlation
The correlation between FXA and VEA is 0.67, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.67 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.66 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.68 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.62 |
Correlation (All Time) Calculated using the full available price history since Jul 27, 2007 | 0.63 |
The correlation between FXA and VEA has been stable across timeframes, ranging from 0.62 to 0.68 - a consistent structural relationship.
Compare stocks, funds, or ETFs
Search for stocks, ETFs, and funds for a quick comparison or use the comparison tool for more options.
Return for Risk
FXA vs. VEA — Risk / Return Rank
FXA
VEA
FXA vs. VEA - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Invesco CurrencyShares Australian Dollar Trust (FXA) and Vanguard FTSE Developed Markets ETF (VEA). 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.
| FXA | VEA | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.65 | ||
| Sortino ratioReturn per unit of downside risk | -0.81 | ||
| Omega ratioGain probability vs. loss probability | 1.24 | 1.38 | -0.13 |
| Calmar ratioReturn relative to maximum drawdown | 2.72 | 2.81 | -0.09 |
| Martin ratioReturn relative to average drawdown | 7.85 | 10.94 | -3.09 |
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month. | |||
Loading charts...
Sharpe Ratios by Period
| FXA | VEA | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 1.44 | 2.09 | -0.65 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | -0.09 | 0.58 | -0.67 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.03 | 0.59 | -0.56 |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.14 | 0.25 | -0.10 |
Drawdowns
FXA vs. VEA - Drawdown Comparison
The maximum FXA drawdown since its inception was -40.97%, smaller than the maximum VEA drawdown of -60.68%. Use the drawdown chart below to compare losses from any high point for FXA and VEA.
Loading charts...
Drawdown Indicators
| FXA | VEA | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -40.97% | -60.68% | +19.71% |
Max Drawdown (1Y)Largest decline over 1 year | -4.21% | -11.63% | +7.42% |
Max Drawdown (3Y)Largest decline over 3 years | -13.02% | -13.45% | +0.43% |
Max Drawdown (5Y)Largest decline over 5 years | -21.05% | -29.71% | +8.66% |
Max Drawdown (10Y)Largest decline over 10 years | -27.99% | -35.73% | +7.74% |
Current DrawdownCurrent decline from peak | -24.43% | -0.90% | -23.53% |
Average DrawdownAverage peak-to-trough decline | -18.82% | -13.29% | -5.53% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 1.45% | 2.98% | -1.53% |
Volatility
FXA vs. VEA - Volatility Comparison
The current volatility for Invesco CurrencyShares Australian Dollar Trust (FXA) is 2.25%, while Vanguard FTSE Developed Markets ETF (VEA) has a volatility of 5.66%. This indicates that FXA experiences smaller price fluctuations and is considered to be less risky than VEA based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
Loading charts...
Volatility by Period
| FXA | VEA | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 2.25% | 5.66% | -3.41% |
Volatility (6M)Calculated over the trailing 6-month period | 6.21% | 13.32% | -7.11% |
Volatility (1Y)Calculated over the trailing 1-year period | 7.96% | 15.66% | -7.70% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 10.41% | 16.55% | -6.14% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 9.90% | 17.36% | -7.46% |
FXA vs. VEA - Expense Ratio Comparison
FXA has a 0.40% expense ratio, which is higher than VEA's 0.03% expense ratio.
Dividends
FXA vs. VEA - Dividend Comparison
FXA's dividend yield for the trailing twelve months is around 0.95%, less than VEA's 2.62% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
FXA Invesco CurrencyShares Australian Dollar Trust | 0.95% | 1.16% | 1.66% | 0.98% | 0.05% | 0.00% | 0.03% | 0.53% | 1.04% | 0.83% | 1.01% | 1.52% |
VEA Vanguard FTSE Developed Markets ETF | 2.62% | 3.22% | 3.35% | 3.15% | 2.91% | 3.16% | 2.04% | 3.04% | 3.35% | 2.77% | 3.05% | 2.92% |
Frequently Asked Questions
FXA and VEA have a correlation of 0.67, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
VEA has higher volatility (5.66%) compared to FXA (2.25%). In terms of maximum drawdown, FXA dropped -40.97% vs VEA's -60.68%.
On 10-year performance, VEA leads with 10.17% vs 0.27% for FXA. On fees, VEA is cheaper at 0.03% per year. On volatility, FXA has been the lower-risk option at 2.25%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, VEA has performed better with a 10.17% return vs 0.27%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
VEA is cheaper with a 0.03% expense ratio, compared with 0.40% for FXA.
VEA has the higher dividend yield at 2.62%, compared with 0.95% for FXA.
FXA is categorized as Currency, while VEA is Foreign Large Cap Equities. FXA tracks USD/AUD Exchange Rate, while VEA tracks FTSE Developed All Cap ex US Index. They also come from different issuers: Invesco and Vanguard. Their fees differ too: 0.40% for FXA and 0.03% for VEA.
VEA currently has the higher Sharpe Ratio (2.09 vs 1.44), 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.
Find the right allocation for FXA and VEA
Add both to a portfolio and optimize allocations for your target — whether that's maximizing returns, minimizing drawdowns, or balancing risk across holdings.
Open Portfolio Optimizer