NFTY vs. ^N225

Last updated Jun 5, 2026

NFTY (First Trust India NIFTY 50 Equal Weight ETF) is Asia Pacific Equities fund tracking the NIFTY 50 Equal Weight Index, while ^N225 (Nikkei 225) is an index. Over the past 10 years, NFTY returned 8.17%/yr vs 10.51%/yr for ^N225. At a 0.11 correlation, their price movements are largely independent.

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 -8.94% return, which is significantly lower than ^N225's 31.16% return. Over the past 10 years, NFTY has underperformed ^N225 with an annualized return of 8.17%, while ^N225 has yielded a comparatively higher 10.51% annualized return.

NFTY

• 1D: 0.84%
• 1M: -1.60%
• YTD: -8.94%
• 6M: -7.97%
• 1Y: -7.39%
• 3Y*: 6.09%
• 5Y*: 4.80%
• 10Y*: 8.17%

^N225

• 1D: 0.00%
• 1M: 11.42%
• YTD: 31.16%
• 6M: 28.29%
• 1Y: 59.61%
• 3Y*: 21.94%
• 5Y*: 9.82%
• 10Y*: 10.51%

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

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	-8.94%	5.47%	5.18%	24.00%	-3.46%	26.83%	10.04%	0.58%	-1.51%	21.78%
^N225 Nikkei 225	31.16%	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 0.10, meaning there is essentially no relationship between their price movements. Each responds to its own set of market drivers, making them strong candidates for combining in a diversified portfolio.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.10
Correlation (3Y) Calculated over the trailing 3-year period	0.10
Correlation (5Y) Calculated over the trailing 5-year period	0.13
Correlation (10Y) Calculated over the trailing 10-year period	0.12
Correlation (All Time) Calculated using the full available price history since Feb 29, 2012	0.11

Return for Risk

NFTY vs. ^N225 — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

NFTY

NFTY Risk / Return Rank: 4
NFTY Sharpe Ratio Rank: 5
NFTY Sortino Ratio Rank: 4
NFTY Omega Ratio Rank: 4
NFTY Calmar Ratio Rank: 5
NFTY Martin Ratio Rank: 3

^N225

^N225 Risk / Return Rank: 96
^N225 Sharpe Ratio Rank: 95
^N225 Sortino Ratio Rank: 97
^N225 Omega Ratio Rank: 95
^N225 Calmar Ratio Rank: 97
^N225 Martin Ratio Rank: 96

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

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.

	NFTY	^N225	Difference
Sharpe ratio: Return per unit of total volatility	-0.50	2.54	-3.04
Sortino ratio: Return per unit of downside risk	-0.66	3.54	-4.20
Omega ratio: Gain probability vs. loss probability	0.93	1.42	-0.49
Calmar ratio: Return relative to maximum drawdown	-0.46	4.33	-4.79
Martin ratio: Return relative to average drawdown	-1.20	14.09	-15.29
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

NFTY vs. ^N225 - Sharpe Ratio Comparison

The current NFTY Sharpe Ratio is -0.50, which is lower than the ^N225 Sharpe Ratio of 2.54. 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.

Sharpe Ratios by Period

	NFTY	^N225	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	-0.50	2.54	-3.04
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.28	0.43	-0.15
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.40	0.51	-0.11
Sharpe Ratio (All Time) Calculated using the full available price history	0.28	0.25	+0.03

Drawdowns

NFTY vs. ^N225 - Drawdown Comparison

The maximum NFTY drawdown since its inception was -47.67%, smaller than the maximum ^N225 drawdown of -52.37%. 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%	-52.37%	+4.70%
Max Drawdown (1Y) Largest decline over 1 year	-16.14%	-14.75%	-1.39%
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	-16.76%	-1.26%	-15.50%
Average Drawdown Average peak-to-trough decline	-9.58%	-13.63%	+4.05%
Ulcer Index Depth and duration of drawdowns from previous peaks	6.16%	4.47%	+1.69%

Volatility

NFTY vs. ^N225 - Volatility Comparison

The current volatility for First Trust India NIFTY 50 Equal Weight ETF (NFTY) is 4.59%, while Nikkei 225 (^N225) has a volatility of 7.14%. 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	4.59%	7.14%	-2.55%
Volatility (6M) Calculated over the trailing 6-month period	12.58%	20.24%	-7.66%
Volatility (1Y) Calculated over the trailing 1-year period	14.73%	25.21%	-10.48%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	17.38%	23.67%	-6.29%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	20.71%	21.51%	-0.80%

Frequently Asked Questions

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

NFTY and ^N225 have a correlation of 0.10, 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 (7.14%) compared to NFTY (4.59%). In terms of maximum drawdown, NFTY dropped -47.67% vs ^N225's -52.37%.

Which has better risk-adjusted returns?

^N225 currently has the higher Sharpe Ratio (2.54 vs -0.50), 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.