FXA vs. UDN
FXA (Invesco CurrencyShares Australian Dollar Trust) and UDN (Invesco DB US Dollar Index Bearish Fund) are both Currency funds from Invesco - FXA tracks the USD/AUD Exchange Rate while UDN tracks the Deutsche Bank Short USD Currency Portfolio Index. Both are passively managed. Over the past 10 years, FXA returned -0.16%/yr vs -0.45%/yr for UDN. A 0.61 correlation means they provide meaningful diversification when combined. FXA charges 0.40%/yr vs 0.77%/yr for UDN.
Performance
FXA vs. UDN - Performance Comparison
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Returns By Period
In the year-to-date period, FXA achieves a 4.11% return, which is significantly higher than UDN's -2.36% return. Over the past 10 years, FXA has outperformed UDN with an annualized return of -0.16%, while UDN has yielded a comparatively lower -0.45% annualized return.
FXA
- 1D
- -1.20%
- 1M
- -2.93%
- YTD
- 4.11%
- 6M
- 3.68%
- 1Y
- 8.15%
- 3Y*
- 2.48%
- 5Y*
- -1.06%
- 10Y*
- -0.16%
UDN
- 1D
- -0.34%
- 1M
- -2.04%
- YTD
- -2.36%
- 6M
- -2.68%
- 1Y
- -1.37%
- 3Y*
- 2.64%
- 5Y*
- -0.72%
- 10Y*
- -0.45%
FXA vs. UDN - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
FXA Invesco CurrencyShares Australian Dollar Trust | 4.11% | 9.10% | -7.75% | 1.20% | -6.46% | -6.17% | 9.52% | 0.13% | -8.84% | 9.05% |
UDN Invesco DB US Dollar Index Bearish Fund | -2.36% | 12.37% | -4.53% | 4.88% | -7.96% | -7.03% | 6.20% | -0.97% | -5.02% | 9.50% |
Correlation
The correlation between FXA and UDN is 0.70, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.70 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.68 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.69 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.65 |
Correlation (All Time) Calculated using the full available price history since Mar 1, 2007 | 0.61 |
The correlation between FXA and UDN has been stable across timeframes, ranging from 0.61 to 0.70 - a consistent structural relationship.
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Return for Risk
FXA vs. UDN — Risk / Return Rank
FXA
UDN
FXA vs. UDN - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Invesco CurrencyShares Australian Dollar Trust (FXA) and Invesco DB US Dollar Index Bearish Fund (UDN). 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.
Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.
| FXA | UDN | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +1.24 | ||
| Sortino ratioReturn per unit of downside risk | +1.74 | ||
| Omega ratioGain probability vs. loss probability | 1.17 | 0.97 | +0.20 |
| Calmar ratioReturn relative to maximum drawdown | 1.81 | -0.28 | +2.09 |
| Martin ratioReturn relative to average drawdown | 5.11 | -0.60 | +5.71 |
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Drawdowns
FXA vs. UDN - Drawdown Comparison
The maximum FXA drawdown since its inception was -40.97%, roughly equal to the maximum UDN drawdown of -41.67%. Use the drawdown chart below to compare losses from any high point for FXA and UDN.
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Drawdown Indicators
| FXA | UDN | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -40.97% | -41.67% | +0.70% |
Max Drawdown (1Y)Largest decline over 1 year | -4.52% | -4.91% | +0.39% |
Max Drawdown (3Y)Largest decline over 3 years | -13.02% | -8.59% | -4.43% |
Max Drawdown (5Y)Largest decline over 5 years | -19.32% | -20.82% | +1.50% |
Max Drawdown (10Y)Largest decline over 10 years | -27.99% | -25.72% | -2.27% |
Current DrawdownCurrent decline from peak | -26.67% | -28.97% | +2.30% |
Average DrawdownAverage peak-to-trough decline | -18.83% | -20.63% | +1.80% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 1.60% | 2.28% | -0.68% |
Volatility
FXA vs. UDN - Volatility Comparison
Invesco CurrencyShares Australian Dollar Trust (FXA) has a higher volatility of 2.39% compared to Invesco DB US Dollar Index Bearish Fund (UDN) at 1.37%. This indicates that FXA's price experiences larger fluctuations and is considered to be riskier than UDN based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| FXA | UDN | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 2.39% | 1.37% | +1.02% |
Volatility (6M)Calculated over the trailing 6-month period | 6.49% | 4.34% | +2.15% |
Volatility (1Y)Calculated over the trailing 1-year period | 8.09% | 6.05% | +2.04% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 10.42% | 7.41% | +3.01% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 9.88% | 6.86% | +3.02% |
FXA vs. UDN - Expense Ratio Comparison
FXA has a 0.40% expense ratio, which is lower than UDN's 0.77% expense ratio.
Dividends
FXA vs. UDN - Dividend Comparison
FXA's dividend yield for the trailing twelve months is around 0.98%, less than UDN's 3.01% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
FXA Invesco CurrencyShares Australian Dollar Trust | 0.98% | 1.16% | 1.66% | 0.98% | 0.05% | 0.00% | 0.03% | 0.53% | 1.04% | 0.83% | 1.01% | 1.52% |
UDN Invesco DB US Dollar Index Bearish Fund | 3.01% | 2.94% | 5.33% | 5.21% | 0.69% | 0.00% | 0.00% | 1.38% | 1.26% | 0.11% | 0.00% | 0.00% |
Frequently Asked Questions
FXA and UDN have a correlation of 0.70, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
FXA has higher volatility (2.39%) compared to UDN (1.37%). In terms of maximum drawdown, FXA dropped -40.97% vs UDN's -41.67%.
On 10-year performance, FXA leads with -0.16% vs -0.45% for UDN. On fees, FXA is cheaper at 0.40% per year. On volatility, UDN has been the lower-risk option at 1.37%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, FXA has performed better with a -0.16% return vs -0.45%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
FXA is cheaper with a 0.40% expense ratio, compared with 0.77% for UDN.
UDN has the higher dividend yield at 3.01%, compared with 0.98% for FXA.
FXA tracks USD/AUD Exchange Rate, while UDN tracks Deutsche Bank Short USD Currency Portfolio Index. Their fees differ too: 0.40% for FXA and 0.77% for UDN.
FXA currently has the higher Sharpe Ratio (1.01 vs -0.23), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.
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