FXE vs. VGK
Compare and contrast key facts about Invesco CurrencyShares® Euro Currency Trust (FXE) and Vanguard FTSE Europe ETF (VGK).
FXE and VGK are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. FXE is a passively managed fund by Invesco that tracks the performance of the Euro. It was launched on Dec 9, 2005. VGK is a passively managed fund by Vanguard that tracks the performance of the FTSE Developed Europe Index. It was launched on Mar 4, 2005. Both FXE and VGK 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: FXE or VGK.
Key characteristics
| FXE | VGK | |
|---|---|---|
| YTD Return | -2.32% | 3.53% |
| 1Y Return | -0.86% | 8.50% |
| 3Y Return (Ann) | -3.67% | 3.18% |
| 5Y Return (Ann) | -0.97% | 7.10% |
| 10Y Return (Ann) | -2.94% | 4.30% |
| Sharpe Ratio | -0.14 | 0.74 |
| Daily Std Dev | 6.60% | 13.25% |
| Max Drawdown | -43.33% | -63.61% |
| Current Drawdown | -35.25% | -1.59% |
Correlation
The correlation between FXE and VGK is 0.47, 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
FXE vs. VGK - Performance Comparison
In the year-to-date period, FXE achieves a -2.32% return, which is significantly lower than VGK's 3.53% return. Over the past 10 years, FXE has underperformed VGK with an annualized return of -2.94%, while VGK has yielded a comparatively higher 4.30% 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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FXE vs. VGK - Expense Ratio Comparison
FXE has a 0.40% expense ratio, which is higher than VGK's 0.08% expense ratio.
Risk-Adjusted Performance
FXE vs. VGK - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for Invesco CurrencyShares® Euro Currency Trust (FXE) and Vanguard FTSE Europe ETF (VGK). 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
FXE vs. VGK - Dividend Comparison
FXE's dividend yield for the trailing twelve months is around 2.09%, less than VGK's 3.29% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
FXE Invesco CurrencyShares® Euro Currency Trust | 2.09% | 1.49% | 0.01% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
VGK Vanguard FTSE Europe ETF | 3.29% | 3.15% | 3.25% | 3.05% | 2.11% | 3.27% | 3.95% | 2.70% | 3.52% | 3.25% | 4.62% | 2.77% |
Drawdowns
FXE vs. VGK - Drawdown Comparison
The maximum FXE drawdown since its inception was -43.33%, smaller than the maximum VGK drawdown of -63.61%. Use the drawdown chart below to compare losses from any high point for FXE and VGK. For additional features, visit the drawdowns tool.
Volatility
FXE vs. VGK - Volatility Comparison
The current volatility for Invesco CurrencyShares® Euro Currency Trust (FXE) is 1.84%, while Vanguard FTSE Europe ETF (VGK) has a volatility of 3.47%. This indicates that FXE experiences smaller price fluctuations and is considered to be less risky than VGK based on this measure. The chart below showcases a comparison of their rolling one-month volatility.