FXA vs. VEA
Compare and contrast key facts about Invesco CurrencyShares Australian Dollar Trust (FXA) and Vanguard FTSE Developed Markets ETF (VEA).
FXA and VEA 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. VEA is a passively managed fund by Vanguard that tracks the performance of the MSCI EAFE Index. It was launched on Jul 20, 2007. Both FXA and VEA 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 VEA.
Key characteristics
| FXA | VEA | |
|---|---|---|
| YTD Return | -1.00% | 6.75% |
| 1Y Return | 6.20% | 15.78% |
| 3Y Return (Ann) | -2.72% | 1.35% |
| 5Y Return (Ann) | -0.25% | 7.43% |
| 10Y Return (Ann) | -2.54% | 5.08% |
| Sharpe Ratio | 0.73 | 1.16 |
| Daily Std Dev | 8.65% | 13.23% |
| Max Drawdown | -40.97% | -60.70% |
| Current Drawdown | -30.72% | -3.86% |
Correlation
The correlation between FXA and VEA is 0.63, which is considered to be moderate. This suggests that the two assets have some degree of positive relationship in their price movements. Moderate correlation can be acceptable for portfolio diversification, offering a balance between risk and potential returns.
Performance
FXA vs. VEA - Performance Comparison
In the year-to-date period, FXA achieves a -1.00% return, which is significantly lower than VEA's 6.75% return. Over the past 10 years, FXA has underperformed VEA with an annualized return of -2.54%, while VEA has yielded a comparatively higher 5.08% 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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FXA vs. VEA - Expense Ratio Comparison
FXA has a 0.40% expense ratio, which is higher than VEA's 0.05% expense ratio.
Risk-Adjusted Performance
FXA vs. VEA - Risk-Adjusted Performance 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.
Dividends
FXA vs. VEA - Dividend Comparison
FXA's dividend yield for the trailing twelve months is around 1.47%, less than VEA's 3.31% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
FXA Invesco CurrencyShares Australian Dollar Trust | 1.47% | 0.98% | 0.05% | 0.00% | 0.03% | 0.53% | 1.04% | 0.83% | 1.01% | 1.52% | 2.01% | 2.14% |
VEA Vanguard FTSE Developed Markets ETF | 3.31% | 3.15% | 2.91% | 3.16% | 2.04% | 3.04% | 3.35% | 2.77% | 3.05% | 2.92% | 3.68% | 2.60% |
Drawdowns
FXA vs. VEA - Drawdown Comparison
The maximum FXA drawdown since its inception was -40.97%, smaller than the maximum VEA drawdown of -60.70%. Use the drawdown chart below to compare losses from any high point for FXA and VEA. For additional features, visit the drawdowns tool.
Volatility
FXA vs. VEA - Volatility Comparison
The current volatility for Invesco CurrencyShares Australian Dollar Trust (FXA) is 2.92%, while Vanguard FTSE Developed Markets ETF (VEA) has a volatility of 4.60%. 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.