UDN vs VOO
Invesco DB US Dollar Index Bearish Fund ETF vs Vanguard S&P 500 ETF
Quick Verdict
VOO has a lower expense ratio. VOO delivered stronger 1-year returns. VOO offers more diversification with 505 holdings.
Side-by-Side Comparison
| Metric | UDN | VOO | Winner |
|---|---|---|---|
| Expense Ratio | 0.77% | 0.03% | |
| AUM | $107M | $979.0B | |
| Dividend Yield | 3.00% | 1.09% | |
| Holdings | 4 | 509 | |
| YTD Return | -0.33% | +13.44% | |
| 1Y Return | +0.40% | +22.62% | |
| 3Y Return (annualized) | +1.49% | +21.47% | |
| 5Y Return (annualized) | -1.10% | +13.27% | |
| Volatility (annualized) | 8.0% | 14.1% | |
| Max Drawdown | -41.7% | -34.3% | |
| Fund Family | Invesco (US) | Vanguard (US) | |
| Category | Alternative | Equity | |
| Inception | Feb 20, 2007 | Sep 7, 2010 |
UDN vs VOO Performance
Invesco DB US Dollar Index Bearish Fund ETF (UDN) is a ETF from Invesco (US) and Vanguard S&P 500 ETF (VOO) is a ETF from Vanguard (US). Over the past year UDN returned +0.40% while VOO returned +22.62%. Year to date, UDN is down 0.33% versus a gain of 13.44% for VOO.
Over three years, UDN compounded at +1.49% per year against +21.47% for VOO; over five years the annualized figures are -1.10% and +13.27% respectively. Across the full 16-year window we track, VOO has the edge at +13.55% annualized vs -0.94%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VOO has been the more volatile fund, with annualized monthly volatility of 14.1% 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 -41.7% for UDN and -34.3% for VOO. 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 0.39. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
UDN charges 0.77% per year while VOO charges 0.03%. On a $10,000 position that is $77 vs $3 annually, a gap of $74 per year that compounds over a long holding period. On income, UDN currently yields 3.00% against 1.09% for VOO.
Holdings Overlap
UDN and VOO share 0 holdings out of 506 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, UDN or VOO?
UDN has an expense ratio of 0.77% while VOO charges 0.03%. VOO is the cheaper option. On a $10,000 investment, that is $74 per year of difference.
Which performed better, UDN or VOO?
Over the past year UDN returned +0.40% vs +22.62% for VOO, so VOO leads on 1-year performance. Over the longest common window we track (16 years), UDN annualized -0.94% vs +13.55% for VOO. Past performance does not guarantee future results.
Which is riskier, UDN or VOO?
VOO has been the more volatile fund at 14.1% annualized versus 8.0% for UDN. Worst drawdown: UDN -41.7% vs VOO -34.3%.
Should I hold both UDN and VOO?
UDN and VOO have a monthly-return correlation of 0.39, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between UDN and VOO?
UDN and VOO share 0 common holdings with a 0.0% weight overlap. Combined, they hold 506 unique securities.
Which pays a higher dividend, UDN or VOO?
UDN yields 3.00% while VOO yields 1.09%, so UDN currently pays the higher dividend yield.
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