SPY vs UDN
State Street SPDR S&P 500 ETF Trust vs Invesco DB US Dollar Index Bearish Fund ETF
Quick Verdict
SPY has a lower expense ratio. SPY delivered stronger 1-year returns. SPY offers more diversification with 503 holdings.
Side-by-Side Comparison
| Metric | SPY | UDN | Winner |
|---|---|---|---|
| Expense Ratio | 0.09% | 0.77% | |
| AUM | $789.1B | $107M | |
| Dividend Yield | 1.01% | 3.00% | |
| Holdings | 505 | 4 | |
| YTD Return | +13.68% | -0.60% | |
| 1Y Return | +21.53% | -0.41% | |
| 3Y Return (annualized) | +21.44% | +1.40% | |
| 5Y Return (annualized) | +13.18% | -1.13% | |
| Volatility (annualized) | 15.3% | 8.0% | |
| Max Drawdown | -56.5% | -41.7% | |
| Fund Family | State Street Investment Management | Invesco (US) | |
| Category | Equity | Alternative | |
| Inception | Jan 22, 1993 | Feb 20, 2007 |
SPY vs UDN Performance
State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management and Invesco DB US Dollar Index Bearish Fund ETF (UDN) is a ETF from Invesco (US). Over the past year SPY returned +21.53% while UDN returned -0.41%. Year to date, SPY is up 13.68% versus a loss of 0.60% for UDN.
Over three years, SPY compounded at +21.44% per year against +1.40% for UDN; over five years the annualized figures are +13.18% and -1.13% respectively. Across the full 20-year window we track, SPY has the edge at +8.85% annualized vs -0.95%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SPY has been the more volatile fund, with annualized monthly volatility of 15.3% compared with 8.0% for UDN. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.
The deepest peak-to-trough decline in our data was -56.5% for SPY and -41.7% for UDN. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.
The two funds' monthly returns correlate at 0.44. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
SPY charges 0.09% per year while UDN charges 0.77%. On a $10,000 position that is $9 vs $77 annually, a gap of $68 per year that compounds over a long holding period. On income, SPY currently yields 1.01% against 3.00% for UDN.
Holdings Overlap
SPY and UDN share 0 holdings out of 504 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, SPY or UDN?
SPY has an expense ratio of 0.09% while UDN charges 0.77%. SPY is the cheaper option. On a $10,000 investment, that is $68 per year of difference.
Which performed better, SPY or UDN?
Over the past year SPY returned +21.53% vs -0.41% for UDN, so SPY leads on 1-year performance. Over the longest common window we track (20 years), SPY annualized +8.85% vs -0.95% for UDN. Past performance does not guarantee future results.
Which is riskier, SPY or UDN?
SPY has been the more volatile fund at 15.3% annualized versus 8.0% for UDN. Worst drawdown: SPY -56.5% vs UDN -41.7%.
Should I hold both SPY and UDN?
SPY and UDN have a monthly-return correlation of 0.44, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SPY and UDN?
SPY and UDN share 0 common holdings with a 0.0% weight overlap. Combined, they hold 504 unique securities.
Which pays a higher dividend, SPY or UDN?
SPY yields 1.01% while UDN yields 3.00%, so UDN currently pays the higher dividend yield.
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