IEF vs. FXY
IEF (iShares 7-10 Year Treasury Bond ETF) and FXY (Invesco CurrencyShares® Japanese Yen Trust) are both exchange-traded funds - IEF is a Government Bonds fund tracking the ICE U.S. Treasury 7-10 Year Bond Index, while FXY is a Currency fund tracking the Japanese Yen. Both are passively managed. Over the past 10 years, IEF returned 0.63%/yr vs -4.49%/yr for FXY. A 0.52 correlation means they provide meaningful diversification when combined. IEF charges 0.15%/yr vs 0.40%/yr for FXY.
Performance
IEF vs. FXY - Performance Comparison
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Returns By Period
In the year-to-date period, IEF achieves a -0.66% return, which is significantly higher than FXY's -2.28% return. Over the past 10 years, IEF has outperformed FXY with an annualized return of 0.63%, while FXY has yielded a comparatively lower -4.49% annualized return.
IEF
- 1D
- -0.25%
- 1M
- -0.08%
- YTD
- -0.66%
- 6M
- -1.17%
- 1Y
- 4.06%
- 3Y*
- 2.47%
- 5Y*
- -1.14%
- 10Y*
- 0.63%
FXY
- 1D
- -0.17%
- 1M
- -1.89%
- YTD
- -2.28%
- 6M
- -3.30%
- 1Y
- -10.40%
- 3Y*
- -4.81%
- 5Y*
- -7.79%
- 10Y*
- -4.49%
IEF vs. FXY - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
IEF iShares 7-10 Year Treasury Bond ETF | -0.66% | 8.03% | -0.63% | 3.64% | -15.15% | -3.33% | 10.01% | 8.03% | 0.99% | 2.55% |
FXY Invesco CurrencyShares® Japanese Yen Trust | -2.28% | 0.09% | -10.93% | -7.44% | -12.75% | -10.90% | 4.61% | 0.37% | 2.31% | 3.17% |
Correlation
The correlation between IEF and FXY is 0.51, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.51 |
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 | 0.54 |
Correlation (All Time) Calculated using the full available price history since Feb 14, 2007 | 0.52 |
The correlation between IEF and FXY has been stable across timeframes, ranging from 0.48 to 0.54 - a consistent structural relationship.
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Return for Risk
IEF vs. FXY — Risk / Return Rank
IEF
FXY
IEF vs. FXY - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares 7-10 Year Treasury Bond ETF (IEF) and Invesco CurrencyShares® Japanese Yen Trust (FXY). 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.
| IEF | FXY | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +2.11 | ||
| Sortino ratioReturn per unit of downside risk | +3.14 | ||
| Omega ratioGain probability vs. loss probability | 1.15 | 0.80 | +0.34 |
| Calmar ratioReturn relative to maximum drawdown | 1.00 | -0.94 | +1.94 |
| Martin ratioReturn relative to average drawdown | 2.98 | -1.39 | +4.37 |
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month. | |||
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Sharpe Ratios by Period
| IEF | FXY | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 0.85 | -1.25 | +2.11 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | -0.15 | -0.76 | +0.62 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.10 | -0.48 | +0.58 |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.50 | -0.18 | +0.68 |
Drawdowns
IEF vs. FXY - Drawdown Comparison
The maximum IEF drawdown since its inception was -23.93%, smaller than the maximum FXY drawdown of -56.03%. Use the drawdown chart below to compare losses from any high point for IEF and FXY.
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Drawdown Indicators
| IEF | FXY | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -23.93% | -56.03% | +32.10% |
Max Drawdown (1Y)Largest decline over 1 year | -4.07% | -11.16% | +7.09% |
Max Drawdown (3Y)Largest decline over 3 years | -7.74% | -15.12% | +7.38% |
Max Drawdown (5Y)Largest decline over 5 years | -21.40% | -33.72% | +12.32% |
Max Drawdown (10Y)Largest decline over 10 years | -23.93% | -40.84% | +16.91% |
Current DrawdownCurrent decline from peak | -11.35% | -55.93% | +44.58% |
Average DrawdownAverage peak-to-trough decline | -5.34% | -27.74% | +22.40% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 1.37% | 7.50% | -6.13% |
Volatility
IEF vs. FXY - Volatility Comparison
iShares 7-10 Year Treasury Bond ETF (IEF) has a higher volatility of 1.54% compared to Invesco CurrencyShares® Japanese Yen Trust (FXY) at 1.19%. This indicates that IEF's price experiences larger fluctuations and is considered to be riskier than FXY based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| IEF | FXY | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.54% | 1.19% | +0.35% |
Volatility (6M)Calculated over the trailing 6-month period | 3.34% | 5.75% | -2.41% |
Volatility (1Y)Calculated over the trailing 1-year period | 4.78% | 8.38% | -3.60% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 7.71% | 10.24% | -2.53% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 6.62% | 9.33% | -2.71% |
IEF vs. FXY - Expense Ratio Comparison
IEF has a 0.15% expense ratio, which is lower than FXY's 0.40% expense ratio.
Dividends
IEF vs. FXY - Dividend Comparison
IEF's dividend yield for the trailing twelve months is around 3.90%, while FXY has not paid dividends to shareholders.
| 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 | 3.90% | 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
IEF and FXY have a correlation of 0.51, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
IEF has higher volatility (1.54%) compared to FXY (1.19%). In terms of maximum drawdown, IEF dropped -23.93% vs FXY's -56.03%.
On 10-year performance, IEF leads with 0.63% vs -4.49% for FXY. On fees, IEF is cheaper at 0.15% per year. On volatility, FXY has been the lower-risk option at 1.19%. 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 0.63% return vs -4.49%. 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 3.90%, compared with 0.00% for FXY.
IEF is categorized as Government Bonds, while FXY is Currency. IEF tracks ICE U.S. Treasury 7-10 Year Bond Index, while FXY tracks Japanese Yen. They also come from different issuers: iShares and Invesco. Their fees differ too: 0.15% for IEF and 0.40% for FXY.
IEF currently has the higher Sharpe Ratio (0.85 vs -1.25), 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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