^N225 vs. NFTY
Compare and contrast key facts about Nikkei 225 (^N225) and First Trust India NIFTY 50 Equal Weight ETF (NFTY).
NFTY is a passively managed fund by First Trust that tracks the performance of the NIFTY 50 Equal Weight Index. It was launched on Feb 14, 2012.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: ^N225 or NFTY.
Key characteristics
| ^N225 | NFTY | |
|---|---|---|
| YTD Return | 16.49% | 15.69% |
| 1Y Return | 24.02% | 28.24% |
| 3Y Return (Ann) | 10.29% | 9.92% |
| 5Y Return (Ann) | 11.94% | 14.54% |
| 10Y Return (Ann) | 10.35% | 8.34% |
| Sharpe Ratio | 0.98 | 1.86 |
| Sortino Ratio | 1.39 | 2.46 |
| Omega Ratio | 1.22 | 1.35 |
| Calmar Ratio | 1.01 | 5.03 |
| Martin Ratio | 4.06 | 15.06 |
| Ulcer Index | 6.34% | 1.90% |
| Daily Std Dev | 26.33% | 15.39% |
| Max Drawdown | -81.87% | -47.67% |
| Current Drawdown | -7.68% | -4.66% |
Correlation
The correlation between ^N225 and NFTY is 0.10, which is considered to be low. This implies their price changes are not closely related. A low correlation is generally favorable for portfolio diversification, as it helps to reduce overall risk by spreading it across multiple assets with different performance patterns.
Performance
^N225 vs. NFTY - Performance Comparison
The year-to-date returns for both stocks are quite close, with ^N225 having a 16.49% return and NFTY slightly lower at 15.69%. Over the past 10 years, ^N225 has outperformed NFTY with an annualized return of 10.35%, while NFTY has yielded a comparatively lower 8.34% annualized return. The chart below displays the growth of a $10,000 investment in both assets, with all prices adjusted for splits and dividends.
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Risk-Adjusted Performance
^N225 vs. NFTY - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for Nikkei 225 (^N225) and First Trust India NIFTY 50 Equal Weight ETF (NFTY). 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.
Drawdowns
^N225 vs. NFTY - Drawdown Comparison
The maximum ^N225 drawdown since its inception was -81.87%, which is greater than NFTY's maximum drawdown of -47.67%. Use the drawdown chart below to compare losses from any high point for ^N225 and NFTY. For additional features, visit the drawdowns tool.
Volatility
^N225 vs. NFTY - Volatility Comparison
Nikkei 225 (^N225) has a higher volatility of 10.40% compared to First Trust India NIFTY 50 Equal Weight ETF (NFTY) at 4.53%. This indicates that ^N225's price experiences larger fluctuations and is considered to be riskier than NFTY based on this measure. The chart below showcases a comparison of their rolling one-month volatility.