UDN vs VYM
Invesco DB US Dollar Index Bearish Fund ETF vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. VYM delivered stronger 1-year returns. VYM offers more diversification with 558 holdings.
Side-by-Side Comparison
| Metric | UDN | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.77% | 0.04% | |
| AUM | $107M | $79.0B | |
| Dividend Yield | 3.00% | 2.86% | |
| Holdings | 4 | 568 | |
| YTD Return | -0.44% | +16.10% | |
| 1Y Return | +0.29% | +25.99% | |
| 3Y Return (annualized) | +1.40% | +18.29% | |
| 5Y Return (annualized) | -1.08% | +12.35% | |
| Volatility (annualized) | 8.0% | 14.6% | |
| Max Drawdown | -41.7% | -58.8% | |
| Fund Family | Invesco (US) | Vanguard (US) | |
| Category | Alternative | Equity | |
| Inception | Feb 20, 2007 | Nov 10, 2006 |
UDN vs VYM Performance
Invesco DB US Dollar Index Bearish Fund ETF (UDN) is a ETF from Invesco (US) and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year UDN returned +0.29% while VYM returned +25.99%. Year to date, UDN is down 0.44% versus a gain of 16.10% for VYM.
Over three years, UDN compounded at +1.40% per year against +18.29% for VYM; over five years the annualized figures are -1.08% and +12.35% respectively. Across the full 20-year window we track, VYM has the edge at +7.08% annualized vs -0.94%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VYM has been the more volatile fund, with annualized monthly volatility of 14.6% 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 -58.8% for VYM. 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
UDN charges 0.77% per year while VYM charges 0.04%. On a $10,000 position that is $77 vs $4 annually, a gap of $73 per year that compounds over a long holding period. On income, UDN currently yields 3.00% against 2.86% for VYM.
Holdings Overlap
UDN and VYM share 0 holdings out of 559 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 VYM?
UDN has an expense ratio of 0.77% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $73 per year of difference.
Which performed better, UDN or VYM?
Over the past year UDN returned +0.29% vs +25.99% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (20 years), UDN annualized -0.94% vs +7.08% for VYM. Past performance does not guarantee future results.
Which is riskier, UDN or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 8.0% for UDN. Worst drawdown: UDN -41.7% vs VYM -58.8%.
Should I hold both UDN and VYM?
UDN and VYM 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 UDN and VYM?
UDN and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 559 unique securities.
Which pays a higher dividend, UDN or VYM?
UDN yields 3.00% while VYM yields 2.86%, so UDN currently pays the higher dividend yield.
Popular ETF Comparisons
Get Full ETF Analytics
Access complete holdings data, overlap analysis, screener tools, and more with FundXLS.