NFTY vs. ^N225

Last updated Aug 6, 2026

NFTY (First Trust India NIFTY 50 Equal Weight ETF) is India Equities fund tracking the NIFTY 50 Equal Weight Index, while ^N225 (Nikkei 225) is an index. Over the past 10 years, NFTY returned 7.61%/yr vs 9.80%/yr for ^N225. Their 0.11 correlation means their historical movements had little consistent relationship.

Performance

NFTY vs. ^N225 - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in First Trust India NIFTY 50 Equal Weight ETF (NFTY) and Nikkei 225 (^N225). The values are adjusted to include any dividend payments, if applicable.

Different Trading Currencies

NFTY is traded in USD, while ^N225 is traded in JPY. To make them comparable, the ^N225 values have been converted to USD using the latest available exchange rates.

Returns By Period

In the year-to-date period, NFTY achieves a -4.44% return, which is significantly lower than ^N225's 28.72% return. Over the past 10 years, NFTY has underperformed ^N225 with an annualized return of 7.61%, while ^N225 has yielded a comparatively higher 9.80% annualized return.

NFTY

• 1D: -0.16%
• 1M: 1.96%
• 6M: -4.29%
• YTD: -4.44%
• 1Y: -0.67%
• 3Y*: 6.67%
• 5Y*: 5.85%
• 10Y*: 7.61%
• ALL TIME*: 6.11%

^N225

• 1D: 2.16%
• 1M: -3.74%
• 6M: 19.69%
• YTD: 28.72%
• 1Y: 50.72%
• 3Y*: 22.31%
• 5Y*: 10.41%
• 10Y*: 9.80%
• ALL TIME*: 6.00%

*Multi-year figures are annualized to reflect compound growth (CAGR)

Liquidity Comparison

Position	Avg. Volume Value (2W)	Avg. Volume Value (1M)	Avg. Volume Value (3M)
^N225 Nikkei 225	$69.29B	$66.36B	$70.06B
NFTY First Trust India NIFTY 50 Equal Weight ETF	$2.57M	$1.71M	$1.60M

NFTY vs. ^N225 - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
NFTY First Trust India NIFTY 50 Equal Weight ETF	-4.44%	5.47%	5.18%	24.00%	-3.46%	26.83%	10.04%	0.58%	-1.51%	21.78%
^N225 Nikkei 225	28.81%	26.56%	7.17%	19.21%	-20.48%	-5.90%	22.42%	19.73%	-10.20%	23.76%

Correlation

The correlation between NFTY and ^N225 is 0.09, meaning there was essentially no consistent relationship between their historical price movements. Each responded to its own set of market drivers.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	0.09
Correlation (3Y) Balances recent behavior with more history.	0.10
Correlation (5Y) Shows whether the relationship held over a longer period.	0.14
Correlation (10Y) Provides a long-term view across more market conditions.	0.12
Correlation (All Time) Calculated using the full available price history since Feb 28, 2012	0.11

Return for Risk

NFTY vs. ^N225 — Risk / Return Rank

Compare historical risk-adjusted metric ranks over the past 12 months.

NFTY

NFTY Risk / Return Rank: 9
NFTY Sharpe Ratio Rank: 9
NFTY Sortino Ratio Rank: 9
NFTY Omega Ratio Rank: 9
NFTY Calmar Ratio Rank: 10
NFTY Martin Ratio Rank: 10

^N225

^N225 Risk / Return Rank: 90
^N225 Sharpe Ratio Rank: 89
^N225 Sortino Ratio Rank: 88
^N225 Omega Ratio Rank: 89
^N225 Calmar Ratio Rank: 95
^N225 Martin Ratio Rank: 89

The rank (0–100) uses a weighted average of the Sharpe, Sortino, Omega, Calmar, and Martin percentile ranks for the trailing 12 months. Higher means stronger historical risk-adjusted performance within the peer group.

NFTY vs. ^N225 - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for First Trust India NIFTY 50 Equal Weight ETF (NFTY) and Nikkei 225 (^N225). 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.

	NFTY	^N225	Difference
Sharpe ratio: Return per unit of total volatility	-0.05	1.80	-1.84
Sortino ratio: Return per unit of downside risk	0.04	2.54	-2.49
Omega ratio: Gain probability vs. loss probability	1.00	1.30	-0.30
Calmar ratio: Return relative to maximum drawdown	-0.04	3.24	-3.29
Martin ratio: Return relative to average drawdown	-0.10	9.68	-9.77

NFTY vs. ^N225 - Sharpe Ratio Comparison

The current NFTY Sharpe Ratio is -0.05, which is lower than the ^N225 Sharpe Ratio of 1.80. The chart below compares the historical Sharpe Ratios of NFTY and ^N225, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

NFTY vs. ^N225 - Drawdown Comparison

The maximum NFTY drawdown since its inception was -47.67%, smaller than the maximum ^N225 drawdown of -51.91%. Use the drawdown chart below to compare losses from any high point for NFTY and ^N225.

Drawdown Indicators

	NFTY	^N225	Difference
Max Drawdown Largest peak-to-trough decline	-47.67%	-51.91%	+4.24%
Max Drawdown (1Y) Largest decline over 1 year	-16.14%	-16.07%	-0.07%
Max Drawdown (3Y) Largest decline over 3 years	-21.55%	-24.78%	+3.23%
Max Drawdown (5Y) Largest decline over 5 years	-21.55%	-36.26%	+14.71%
Max Drawdown (10Y) Largest decline over 10 years	-47.67%	-37.97%	-9.70%
Current Drawdown Current decline from peak	-12.64%	-7.52%	-5.12%
Average Drawdown Average peak-to-trough decline	-9.65%	-13.42%	+3.77%
Ulcer Index Depth and duration of drawdowns from previous peaks	7.01%	5.32%	+1.69%

Volatility

NFTY vs. ^N225 - Volatility Comparison

The current volatility for First Trust India NIFTY 50 Equal Weight ETF (NFTY) is 3.58%, while Nikkei 225 (^N225) has a volatility of 11.52%. This indicates that NFTY experiences smaller price fluctuations and is considered to be less risky than ^N225 based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	NFTY	^N225	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.58%	11.52%	-7.94%
Volatility (6M) Calculated over the trailing 6-month period	12.19%	24.41%	-12.22%
Volatility (1Y) Calculated over the trailing 1-year period	14.86%	29.00%	-14.14%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	17.42%	24.53%	-7.11%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	20.65%	21.89%	-1.24%

Frequently Asked Questions

Can I hold both NFTY and ^N225 in my portfolio?

NFTY and ^N225 have a correlation of 0.09, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, NFTY or ^N225?

^N225 has higher volatility (11.52%) compared to NFTY (3.58%). In terms of maximum drawdown, NFTY dropped -47.67% vs ^N225's -51.91%.

Which has better risk-adjusted returns?

^N225 currently has the higher Sharpe Ratio (1.80 vs -0.05), 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.