FXE vs. TLT
FXE (Invesco CurrencyShares® Euro Currency Trust) and TLT (iShares 20+ Year Treasury Bond ETF) are both exchange-traded funds - FXE is a Currency fund tracking the Euro, while TLT is a Government Bonds fund tracking the ICE U.S. Treasury 20+ Year Bond Index. Both are passively managed. Over the past 10 years, FXE returned 0.27%/yr vs -1.85%/yr for TLT. At a 0.04 correlation, their price movements are largely independent. FXE charges 0.40%/yr vs 0.15%/yr for TLT.
Performance
FXE vs. TLT - Performance Comparison
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Returns By Period
In the year-to-date period, FXE achieves a -2.89% return, which is significantly lower than TLT's 2.11% return. Over the past 10 years, FXE has outperformed TLT with an annualized return of 0.27%, while TLT has yielded a comparatively lower -1.85% annualized return.
FXE
- 1D
- 0.16%
- 1M
- -2.19%
- YTD
- -2.89%
- 6M
- -3.08%
- 1Y
- -1.80%
- 3Y*
- 2.93%
- 5Y*
- -0.21%
- 10Y*
- 0.27%
TLT
- 1D
- -0.03%
- 1M
- 3.05%
- YTD
- 2.11%
- 6M
- 1.10%
- 1Y
- 4.37%
- 3Y*
- -1.49%
- 5Y*
- -6.15%
- 10Y*
- -1.85%
FXE vs. TLT - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
FXE Invesco CurrencyShares® Euro Currency Trust | -2.89% | 14.52% | -4.18% | 4.87% | -6.57% | -7.83% | 7.94% | -2.90% | -5.30% | 13.05% |
TLT iShares 20+ Year Treasury Bond ETF | 2.11% | 4.25% | -8.05% | 2.77% | -31.23% | -4.60% | 18.15% | 14.12% | -1.61% | 9.18% |
Correlation
The correlation between FXE and TLT is 0.33, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.33 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.27 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.20 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.14 |
Correlation (All Time) Calculated using the full available price history since Dec 12, 2005 | 0.04 |
Over the past year, FXE and TLT have become more correlated (0.33) than their long-term average of 0.04, meaning their price movements have been converging.
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Return for Risk
FXE vs. TLT — Risk / Return Rank
FXE
TLT
FXE vs. TLT - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Invesco CurrencyShares® Euro Currency Trust (FXE) and iShares 20+ Year Treasury Bond ETF (TLT). 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.
| FXE | TLT | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.75 | ||
| Sortino ratioReturn per unit of downside risk | -1.11 | ||
| Omega ratioGain probability vs. loss probability | 0.96 | 1.08 | -0.13 |
| Calmar ratioReturn relative to maximum drawdown | -0.33 | 0.58 | -0.91 |
| Martin ratioReturn relative to average drawdown | -0.77 | 1.37 | -2.15 |
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Drawdowns
FXE vs. TLT - Drawdown Comparison
The maximum FXE drawdown since its inception was -43.33%, smaller than the maximum TLT drawdown of -48.35%. Use the drawdown chart below to compare losses from any high point for FXE and TLT.
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Drawdown Indicators
| FXE | TLT | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -43.33% | -48.35% | +5.02% |
Max Drawdown (1Y)Largest decline over 1 year | -5.40% | -7.58% | +2.18% |
Max Drawdown (3Y)Largest decline over 3 years | -8.12% | -19.18% | +11.06% |
Max Drawdown (5Y)Largest decline over 5 years | -20.61% | -43.70% | +23.09% |
Max Drawdown (10Y)Largest decline over 10 years | -26.46% | -48.35% | +21.89% |
Current DrawdownCurrent decline from peak | -29.37% | -39.01% | +9.64% |
Average DrawdownAverage peak-to-trough decline | -22.32% | -13.88% | -8.44% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 2.33% | 3.19% | -0.86% |
Volatility
FXE vs. TLT - Volatility Comparison
The current volatility for Invesco CurrencyShares® Euro Currency Trust (FXE) is 1.55%, while iShares 20+ Year Treasury Bond ETF (TLT) has a volatility of 2.48%. This indicates that FXE experiences smaller price fluctuations and is considered to be less risky than TLT based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| FXE | TLT | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.55% | 2.48% | -0.93% |
Volatility (6M)Calculated over the trailing 6-month period | 4.40% | 6.74% | -2.34% |
Volatility (1Y)Calculated over the trailing 1-year period | 6.21% | 9.54% | -3.33% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 7.66% | 15.82% | -8.16% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 7.26% | 14.88% | -7.62% |
FXE vs. TLT - Expense Ratio Comparison
FXE has a 0.40% expense ratio, which is higher than TLT's 0.15% expense ratio.
Dividends
FXE vs. TLT - Dividend Comparison
FXE's dividend yield for the trailing twelve months is around 0.75%, less than TLT's 4.48% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
FXE Invesco CurrencyShares® Euro Currency Trust | 0.75% | 0.94% | 2.28% | 1.49% | 0.01% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
TLT iShares 20+ Year Treasury Bond ETF | 4.48% | 4.43% | 4.30% | 3.38% | 2.67% | 1.50% | 1.50% | 2.27% | 2.63% | 2.43% | 2.60% | 2.61% |
Frequently Asked Questions
FXE and TLT have a correlation of 0.33, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
TLT has higher volatility (2.48%) compared to FXE (1.55%). In terms of maximum drawdown, FXE dropped -43.33% vs TLT's -48.35%.
On 10-year performance, FXE leads with 0.27% vs -1.85% for TLT. On fees, TLT is cheaper at 0.15% per year. On volatility, FXE has been the lower-risk option at 1.55%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, FXE has performed better with a 0.27% return vs -1.85%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
TLT is cheaper with a 0.15% expense ratio, compared with 0.40% for FXE.
TLT has the higher dividend yield at 4.48%, compared with 0.75% for FXE.
FXE is categorized as Currency, while TLT is Government Bonds. FXE tracks Euro, while TLT tracks ICE U.S. Treasury 20+ Year Bond Index. They also come from different issuers: Invesco and iShares. Their fees differ too: 0.40% for FXE and 0.15% for TLT.
TLT currently has the higher Sharpe Ratio (0.46 vs -0.29), 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.
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