FXE vs. XLK
FXE (Invesco CurrencyShares® Euro Currency Trust) and XLK (State Street Technology Select Sector SPDR ETF) are both exchange-traded funds - FXE is a Currency fund tracking the Euro, while XLK is a Technology Equities fund tracking the S&P Technology Select Sector Daily Capped 35/20 Index. Both are passively managed. Over the past 10 years, FXE returned 0.23%/yr vs 25.48%/yr for XLK. At a 0.16 correlation, their price movements are largely independent. FXE charges 0.40%/yr vs 0.08%/yr for XLK.
Performance
FXE vs. XLK - Performance Comparison
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Returns By Period
In the year-to-date period, FXE achieves a -2.81% return, which is significantly lower than XLK's 28.25% return. Over the past 10 years, FXE has underperformed XLK with an annualized return of 0.23%, while XLK has yielded a comparatively higher 25.48% annualized return.
FXE
- 1D
- -0.38%
- 1M
- -1.87%
- YTD
- -2.81%
- 6M
- -3.08%
- 1Y
- -1.02%
- 3Y*
- 3.01%
- 5Y*
- -0.19%
- 10Y*
- 0.23%
XLK
- 1D
- -4.14%
- 1M
- 2.23%
- YTD
- 28.25%
- 6M
- 26.51%
- 1Y
- 52.47%
- 3Y*
- 30.61%
- 5Y*
- 21.34%
- 10Y*
- 25.48%
FXE vs. XLK - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
FXE Invesco CurrencyShares® Euro Currency Trust | -2.81% | 14.52% | -4.18% | 4.87% | -6.57% | -7.83% | 7.94% | -2.90% | -5.30% | 13.05% |
XLK State Street Technology Select Sector SPDR ETF | 28.25% | 24.61% | 21.63% | 56.02% | -27.73% | 34.74% | 43.62% | 49.86% | -1.68% | 34.26% |
Correlation
The correlation between FXE and XLK is 0.19, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.19 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.15 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.22 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.13 |
Correlation (All Time) Calculated using the full available price history since Dec 12, 2005 | 0.16 |
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Return for Risk
FXE vs. XLK — Risk / Return Rank
FXE
XLK
FXE vs. XLK - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Invesco CurrencyShares® Euro Currency Trust (FXE) and State Street Technology Select Sector SPDR ETF (XLK). 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 | XLK | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -2.41 | ||
| Sortino ratioReturn per unit of downside risk | -2.97 | ||
| Omega ratioGain probability vs. loss probability | 0.98 | 1.38 | -0.40 |
| Calmar ratioReturn relative to maximum drawdown | -0.20 | 3.31 | -3.51 |
| Martin ratioReturn relative to average drawdown | -0.45 | 10.56 | -11.01 |
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Drawdowns
FXE vs. XLK - Drawdown Comparison
The maximum FXE drawdown since its inception was -43.33%, smaller than the maximum XLK drawdown of -82.05%. Use the drawdown chart below to compare losses from any high point for FXE and XLK.
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Drawdown Indicators
| FXE | XLK | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -43.33% | -82.05% | +38.72% |
Max Drawdown (1Y)Largest decline over 1 year | -5.17% | -15.92% | +10.75% |
Max Drawdown (3Y)Largest decline over 3 years | -8.12% | -25.66% | +17.54% |
Max Drawdown (5Y)Largest decline over 5 years | -20.61% | -33.56% | +12.95% |
Max Drawdown (10Y)Largest decline over 10 years | -26.46% | -33.56% | +7.10% |
Current DrawdownCurrent decline from peak | -29.31% | -6.96% | -22.35% |
Average DrawdownAverage peak-to-trough decline | -22.32% | -34.90% | +12.58% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 2.28% | 4.98% | -2.70% |
Volatility
FXE vs. XLK - Volatility Comparison
The current volatility for Invesco CurrencyShares® Euro Currency Trust (FXE) is 1.55%, while State Street Technology Select Sector SPDR ETF (XLK) has a volatility of 12.51%. This indicates that FXE experiences smaller price fluctuations and is considered to be less risky than XLK based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| FXE | XLK | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.55% | 12.51% | -10.96% |
Volatility (6M)Calculated over the trailing 6-month period | 4.41% | 19.70% | -15.29% |
Volatility (1Y)Calculated over the trailing 1-year period | 6.24% | 23.48% | -17.24% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 7.66% | 25.37% | -17.71% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 7.27% | 24.71% | -17.44% |
FXE vs. XLK - Expense Ratio Comparison
FXE has a 0.40% expense ratio, which is higher than XLK's 0.08% expense ratio.
Dividends
FXE vs. XLK - Dividend Comparison
FXE's dividend yield for the trailing twelve months is around 0.74%, more than XLK's 0.43% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
FXE Invesco CurrencyShares® Euro Currency Trust | 0.74% | 0.94% | 2.28% | 1.49% | 0.01% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
XLK State Street Technology Select Sector SPDR ETF | 0.43% | 0.54% | 0.66% | 0.76% | 1.04% | 0.65% | 0.92% | 1.16% | 1.60% | 1.37% | 1.74% | 1.79% |
Frequently Asked Questions
FXE and XLK have a correlation of 0.19, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
XLK has higher volatility (12.51%) compared to FXE (1.55%). In terms of maximum drawdown, FXE dropped -43.33% vs XLK's -82.05%.
On 10-year performance, XLK leads with 25.48% vs 0.23% for FXE. On fees, XLK is cheaper at 0.08% 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, XLK has performed better with a 25.48% return vs 0.23%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
XLK is cheaper with a 0.08% expense ratio, compared with 0.40% for FXE.
FXE has the higher dividend yield at 0.74%, compared with 0.43% for XLK.
FXE is categorized as Currency, while XLK is Technology Equities. FXE tracks Euro, while XLK tracks S&P Technology Select Sector Daily Capped 35/20 Index. They also come from different issuers: Invesco and State Street. Their fees differ too: 0.40% for FXE and 0.08% for XLK.
XLK currently has the higher Sharpe Ratio (2.25 vs -0.17), 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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