FXE vs. VOO
Compare and contrast key facts about Invesco CurrencyShares® Euro Currency Trust (FXE) and Vanguard S&P 500 ETF (VOO).
FXE and VOO 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. VOO is a passively managed fund by Vanguard that tracks the performance of the S&P 500 Index. It was launched on Sep 7, 2010. Both FXE and VOO 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 VOO.
Key characteristics
| FXE | VOO | |
|---|---|---|
| YTD Return | -2.32% | 7.31% |
| 1Y Return | -0.86% | 25.21% |
| 3Y Return (Ann) | -3.67% | 8.45% |
| 5Y Return (Ann) | -0.97% | 13.50% |
| 10Y Return (Ann) | -2.94% | 12.57% |
| Sharpe Ratio | -0.14 | 2.36 |
| Daily Std Dev | 6.60% | 11.75% |
| Max Drawdown | -43.33% | -33.99% |
| Current Drawdown | -35.25% | -2.94% |
Correlation
The correlation between FXE and VOO is 0.20, 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
FXE vs. VOO - Performance Comparison
In the year-to-date period, FXE achieves a -2.32% return, which is significantly lower than VOO's 7.31% return. Over the past 10 years, FXE has underperformed VOO with an annualized return of -2.94%, while VOO has yielded a comparatively higher 12.57% 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. VOO - Expense Ratio Comparison
FXE has a 0.40% expense ratio, which is higher than VOO's 0.03% expense ratio.
Risk-Adjusted Performance
FXE vs. VOO - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for Invesco CurrencyShares® Euro Currency Trust (FXE) and Vanguard S&P 500 ETF (VOO). 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. VOO - Dividend Comparison
FXE's dividend yield for the trailing twelve months is around 2.09%, more than VOO's 1.37% 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% |
VOO Vanguard S&P 500 ETF | 1.37% | 1.46% | 1.69% | 1.25% | 1.54% | 1.88% | 2.06% | 1.78% | 2.02% | 2.10% | 1.85% | 1.84% |
Drawdowns
FXE vs. VOO - Drawdown Comparison
The maximum FXE drawdown since its inception was -43.33%, which is greater than VOO's maximum drawdown of -33.99%. Use the drawdown chart below to compare losses from any high point for FXE and VOO. For additional features, visit the drawdowns tool.
Volatility
FXE vs. VOO - Volatility Comparison
The current volatility for Invesco CurrencyShares® Euro Currency Trust (FXE) is 1.84%, while Vanguard S&P 500 ETF (VOO) has a volatility of 3.60%. This indicates that FXE experiences smaller price fluctuations and is considered to be less risky than VOO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.