FXY vs. IEF
FXY (Invesco CurrencyShares® Japanese Yen Trust) and IEF (iShares 7-10 Year Treasury Bond ETF) are both exchange-traded funds - FXY is a Currency fund tracking the Japanese Yen, while IEF is a Government Bonds fund tracking the ICE U.S. Treasury 7-10 Year Bond Index. Both are passively managed. Over the past 10 years, FXY returned -4.73%/yr vs 0.48%/yr for IEF. A 0.52 correlation means they provide meaningful diversification when combined. FXY charges 0.40%/yr vs 0.15%/yr for IEF.
Performance
FXY vs. IEF - Performance Comparison
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Returns By Period
In the year-to-date period, FXY achieves a -3.77% return, which is significantly lower than IEF's -1.08% return. Over the past 10 years, FXY has underperformed IEF with an annualized return of -4.73%, while IEF has yielded a comparatively higher 0.48% annualized return.
FXY
- 1D
- -0.49%
- 1M
- -1.40%
- 6M
- -2.84%
- YTD
- -3.77%
- 1Y
- -9.61%
- 3Y*
- -5.50%
- 5Y*
- -7.99%
- 10Y*
- -4.73%
IEF
- 1D
- -0.36%
- 1M
- -0.62%
- 6M
- -1.10%
- YTD
- -1.08%
- 1Y
- 2.77%
- 3Y*
- 2.52%
- 5Y*
- -1.53%
- 10Y*
- 0.48%
FXY vs. IEF - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
FXY Invesco CurrencyShares® Japanese Yen Trust | -3.77% | 0.09% | -10.93% | -7.44% | -12.75% | -10.90% | 4.61% | 0.37% | 2.31% | 3.17% |
IEF iShares 7-10 Year Treasury Bond ETF | -1.08% | 8.03% | -0.63% | 3.64% | -15.15% | -3.33% | 10.01% | 8.03% | 0.99% | 2.55% |
Correlation
The correlation between FXY and IEF is 0.45, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.45 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.48 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.52 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.53 |
Correlation (All Time) Calculated using the full available price history since Feb 13, 2007 | 0.52 |
The correlation between FXY and IEF has been stable across timeframes, ranging from 0.45 to 0.53 - a consistent structural relationship.
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Return for Risk
FXY vs. IEF — Risk / Return Rank
FXY
IEF
FXY vs. IEF - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Invesco CurrencyShares® Japanese Yen Trust (FXY) and iShares 7-10 Year Treasury Bond ETF (IEF). 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.
| FXY | IEF | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -1.79 | ||
| Sortino ratioReturn per unit of downside risk | -2.68 | ||
| Omega ratioGain probability vs. loss probability | 0.81 | 1.10 | -0.29 |
| Calmar ratioReturn relative to maximum drawdown | -0.94 | 0.68 | -1.63 |
| Martin ratioReturn relative to average drawdown | -1.53 | 1.76 | -3.29 |
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Drawdowns
FXY vs. IEF - Drawdown Comparison
The maximum FXY drawdown since its inception was -56.62%, which is greater than IEF's maximum drawdown of -23.93%. Use the drawdown chart below to compare losses from any high point for FXY and IEF.
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Drawdown Indicators
| FXY | IEF | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -56.62% | -23.93% | -32.69% |
Max Drawdown (1Y)Largest decline over 1 year | -10.21% | -4.07% | -6.14% |
Max Drawdown (3Y)Largest decline over 3 years | -15.91% | -7.71% | -8.20% |
Max Drawdown (5Y)Largest decline over 5 years | -34.61% | -21.40% | -13.21% |
Max Drawdown (10Y)Largest decline over 10 years | -41.64% | -23.93% | -17.71% |
Current DrawdownCurrent decline from peak | -56.60% | -11.72% | -44.88% |
Average DrawdownAverage peak-to-trough decline | -27.88% | -5.37% | -22.51% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 6.28% | 1.58% | +4.70% |
Volatility
FXY vs. IEF - Volatility Comparison
Invesco CurrencyShares® Japanese Yen Trust (FXY) and iShares 7-10 Year Treasury Bond ETF (IEF) have volatilities of 1.60% and 1.61%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| FXY | IEF | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.60% | 1.61% | -0.01% |
Volatility (6M)Calculated over the trailing 6-month period | 5.52% | 3.60% | +1.92% |
Volatility (1Y)Calculated over the trailing 1-year period | 8.09% | 4.72% | +3.37% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 10.24% | 7.71% | +2.53% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 9.18% | 6.61% | +2.57% |
FXY vs. IEF - Expense Ratio Comparison
FXY has a 0.40% expense ratio, which is higher than IEF's 0.15% expense ratio.
Dividends
FXY vs. IEF - Dividend Comparison
FXY has not paid dividends to shareholders, while IEF's dividend yield for the trailing twelve months is around 3.94%.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
FXY Invesco CurrencyShares® Japanese Yen Trust | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
IEF iShares 7-10 Year Treasury Bond ETF | 3.94% | 3.77% | 3.62% | 2.91% | 1.96% | 0.83% | 1.08% | 2.08% | 2.24% | 1.82% | 1.81% | 1.90% |
Frequently Asked Questions
FXY and IEF have a correlation of 0.45, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
IEF has higher volatility (1.61%) compared to FXY (1.60%). In terms of maximum drawdown, FXY dropped -56.62% vs IEF's -23.93%.
On 10-year performance, IEF leads with 0.48% vs -4.73% for FXY. On fees, IEF is cheaper at 0.15% per year. Their volatility is very similar. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, IEF has performed better with a 0.48% return vs -4.73%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
IEF is cheaper with a 0.15% expense ratio, compared with 0.40% for FXY.
IEF has the higher dividend yield at 3.94%, compared with 0.00% for FXY.
FXY is categorized as Currency, while IEF is Government Bonds. FXY tracks Japanese Yen, while IEF tracks ICE U.S. Treasury 7-10 Year Bond Index. They also come from different issuers: Invesco and iShares. Their fees differ too: 0.40% for FXY and 0.15% for IEF.
IEF currently has the higher Sharpe Ratio (0.59 vs -1.19), 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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