UDN vs. ACLO

Last updated Jun 3, 2026

UDN (Invesco DB US Dollar Index Bearish Fund) and ACLO (TCW AAA CLO ETF) are both exchange-traded funds - UDN is a Currency fund tracking the Deutsche Bank Short USD Currency Portfolio Index, while ACLO is a CLO fund actively managed by TCW. UDN is passively managed, while ACLO is actively managed. Over the past year, UDN returned 0.95% vs 5.32% for ACLO. At a correlation of -0.32, they often move in opposite directions. UDN charges 0.77%/yr vs 0.20%/yr for ACLO.

Performance

UDN vs. ACLO - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Invesco DB US Dollar Index Bearish Fund (UDN) and TCW AAA CLO ETF (ACLO). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, UDN achieves a -0.27% return, which is significantly lower than ACLO's 2.19% return.

UDN

• 1D: -0.03%
• 1M: -0.82%
• YTD: -0.27%
• 6M: 0.84%
• 1Y: 0.95%
• 3Y*: 3.73%
• 5Y*: -0.62%
• 10Y*: -0.44%

ACLO

• 1D: 0.01%
• 1M: 0.44%
• YTD: 2.19%
• 6M: 2.57%
• 1Y: 5.32%
• 3Y*: —
• 5Y*: —
• 10Y*: —

*Multi-year figures are annualized to reflect compound growth (CAGR)

UDN vs. ACLO - Yearly Performance Comparison

	2026 (YTD)	2025	2024
UDN Invesco DB US Dollar Index Bearish Fund	-0.27%	12.37%	-1.97%
ACLO TCW AAA CLO ETF	2.19%	5.32%	0.81%

Correlation

The correlation between UDN and ACLO is -0.31, meaning they tend to move in opposite directions. This is especially valuable for risk management - when one declines, the other has historically tended to hold steady or rise.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	-0.31
Correlation (All Time) Calculated using the full available price history since Nov 19, 2024	-0.32

Return for Risk

UDN vs. ACLO — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

UDN

UDN Risk / Return Rank: 11
UDN Sharpe Ratio Rank: 11
UDN Sortino Ratio Rank: 10
UDN Omega Ratio Rank: 10
UDN Calmar Ratio Rank: 13
UDN Martin Ratio Rank: 12

ACLO

ACLO Risk / Return Rank: 99
ACLO Sharpe Ratio Rank: 99
ACLO Sortino Ratio Rank: 99
ACLO Omega Ratio Rank: 99
ACLO Calmar Ratio Rank: 99
ACLO Martin Ratio Rank: 99

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

UDN vs. ACLO - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Invesco DB US Dollar Index Bearish Fund (UDN) and TCW AAA CLO ETF (ACLO). 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.

	UDN	ACLO	Difference
Sharpe ratio Return per unit of total volatility	0.16	7.30	-7.15
Sortino ratio Return per unit of downside risk	0.27	14.87	-14.60
Omega ratio Gain probability vs. loss probability	1.03	3.41	-2.38
Calmar ratio Return relative to maximum drawdown	0.38	19.64	-19.26
Martin ratio Return relative to average drawdown	0.82	162.50	-161.69
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

UDN vs. ACLO - Sharpe Ratio Comparison

The current UDN Sharpe Ratio is 0.16, which is lower than the ACLO Sharpe Ratio of 7.30. The chart below compares the historical Sharpe Ratios of UDN and ACLO, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	UDN	ACLO	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	0.16	7.30	-7.15
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	-0.08	—	—
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	-0.06	—	—
Sharpe Ratio (All Time) Calculated using the full available price history	-0.09	5.09	-5.18

Drawdowns

UDN vs. ACLO - Drawdown Comparison

The maximum UDN drawdown since its inception was -41.67%, which is greater than ACLO's maximum drawdown of -1.01%. Use the drawdown chart below to compare losses from any high point for UDN and ACLO.

Drawdown Indicators

	UDN	ACLO	Difference
Max Drawdown Largest peak-to-trough decline	-41.67%	-1.01%	-40.66%
Max Drawdown (1Y) Largest decline over 1 year	-4.54%	-0.27%	-4.27%
Max Drawdown (3Y) Largest decline over 3 years	-8.59%	—	—
Max Drawdown (5Y) Largest decline over 5 years	-22.50%	—	—
Max Drawdown (10Y) Largest decline over 10 years	-25.72%	—	—
Current Drawdown Current decline from peak	-27.46%	0.00%	-27.46%
Average Drawdown Average peak-to-trough decline	-20.61%	-0.05%	-20.56%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.10%	0.03%	+2.07%

Volatility

UDN vs. ACLO - Volatility Comparison

Invesco DB US Dollar Index Bearish Fund (UDN) has a higher volatility of 1.25% compared to TCW AAA CLO ETF (ACLO) at 0.14%. This indicates that UDN's price experiences larger fluctuations and is considered to be riskier than ACLO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	UDN	ACLO	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.25%	0.14%	+1.11%
Volatility (6M) Calculated over the trailing 6-month period	4.23%	0.57%	+3.66%
Volatility (1Y) Calculated over the trailing 1-year period	6.13%	0.73%	+5.40%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	7.42%	1.08%	+6.34%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	6.92%	1.08%	+5.84%

UDN vs. ACLO - Expense Ratio Comparison

UDN has a 0.77% expense ratio, which is higher than ACLO's 0.20% expense ratio.

Dividends

UDN vs. ACLO - Dividend Comparison

UDN's dividend yield for the trailing twelve months is around 2.94%, less than ACLO's 4.91% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017
ACLO TCW AAA CLO ETF	4.91%	4.87%	0.59%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
UDN Invesco DB US Dollar Index Bearish Fund	2.94%	2.94%	5.33%	5.21%	0.69%	0.00%	0.00%	1.38%	1.26%	0.11%

Frequently Asked Questions

Can I hold both UDN and ACLO in my portfolio?

UDN and ACLO have a correlation of -0.31, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, UDN or ACLO?

UDN has higher volatility (1.25%) compared to ACLO (0.14%). In terms of maximum drawdown, UDN dropped -41.67% vs ACLO's -1.01%.

Which ETF is better, UDN or ACLO?

On 1-year performance, ACLO leads with 5.32% vs 0.95% for UDN. On fees, ACLO is cheaper at 0.20% per year. On volatility, ACLO has been the lower-risk option at 0.14%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, UDN or ACLO?

Over the 1-year period, ACLO has performed better with a 5.32% return vs 0.95%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, UDN or ACLO?

ACLO is cheaper with a 0.20% expense ratio, compared with 0.77% for UDN.

Which ETF pays a higher dividend yield, UDN or ACLO?

ACLO has the higher dividend yield at 4.91%, compared with 2.94% for UDN.

What is the main difference between UDN and ACLO?

UDN is categorized as Currency, while ACLO is CLO. They also come from different issuers: Invesco and TCW. Their fees differ too: 0.77% for UDN and 0.20% for ACLO.

Which has better risk-adjusted returns?

ACLO currently has the higher Sharpe Ratio (7.30 vs 0.16), 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.