UUP vs VYM

Quick Verdict

VYM has a lower expense ratio. VYM delivered stronger 1-year returns. VYM offers more diversification with 558 holdings.

Lower Fees: VYMHigher Returns: VYMMore Diversified: VYM

Side-by-Side Comparison

MetricUUPVYMWinner
Expense Ratio0.75%0.04%
AUM$430M$79.0B
Dividend Yield3.26%2.86%
Holdings5568
YTD Return+3.95%+16.78%
1Y Return+6.63%+24.43%
3Y Return (annualized)+2.64%+18.60%
5Y Return (annualized)+4.70%+12.30%
Volatility (annualized)7.7%14.6%
Max Drawdown-22.2%-58.8%
Fund FamilyInvesco (US)Vanguard (US)
CategoryAlternativeEquity
InceptionFeb 20, 2007Nov 10, 2006

UUP vs VYM Performance

Invesco DB US Dollar Index Bullish Fund (UUP) is a ETF from Invesco (US) and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year UUP returned +6.63% while VYM returned +24.43%. Year to date, UUP is up 3.95% versus a gain of 16.78% for VYM.

Over three years, UUP compounded at +2.64% per year against +18.60% for VYM; over five years the annualized figures are +4.70% and +12.30% respectively. Across the full 20-year window we track, VYM has the edge at +7.11% annualized vs +1.38%. 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 7.7% for UUP. 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 -22.2% for UUP 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 -0.43. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

UUP charges 0.75% per year while VYM charges 0.04%. On a $10,000 position that is $75 vs $4 annually, a gap of $71 per year that compounds over a long holding period. On income, UUP currently yields 3.26% against 2.86% for VYM.

Holdings Overlap

0.0%overlap

UUP 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, UUP or VYM?

UUP has an expense ratio of 0.75% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $71 per year of difference.

Which performed better, UUP or VYM?

Over the past year UUP returned +6.63% vs +24.43% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (20 years), UUP annualized +1.38% vs +7.11% for VYM. Past performance does not guarantee future results.

Which is riskier, UUP or VYM?

VYM has been the more volatile fund at 14.6% annualized versus 7.7% for UUP. Worst drawdown: UUP -22.2% vs VYM -58.8%.

Should I hold both UUP and VYM?

UUP and VYM have a monthly-return correlation of -0.43, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between UUP and VYM?

UUP and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 559 unique securities.

Which pays a higher dividend, UUP or VYM?

UUP yields 3.26% while VYM yields 2.86%, so UUP currently pays the higher dividend yield.

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