UDN vs. IAU
UDN (Invesco DB US Dollar Index Bearish Fund) and IAU (iShares Gold Trust) are both exchange-traded funds - UDN is a Currency fund tracking the Deutsche Bank Short USD Currency Portfolio Index, while IAU is a Gold fund tracking the LBMA Gold Price. Both are passively managed. Over the past 10 years, UDN returned -0.45%/yr vs 11.76%/yr for IAU. At a 0.45 correlation, their price movements are largely independent. UDN charges 0.77%/yr vs 0.25%/yr for IAU.
Performance
UDN vs. IAU - Performance Comparison
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Returns By Period
In the year-to-date period, UDN achieves a -2.36% return, which is significantly higher than IAU's -4.73% return. Over the past 10 years, UDN has underperformed IAU with an annualized return of -0.45%, while IAU has yielded a comparatively higher 11.76% annualized return.
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%
IAU
- 1D
- -1.87%
- 1M
- -8.82%
- YTD
- -4.73%
- 6M
- -8.68%
- 1Y
- 21.45%
- 3Y*
- 28.61%
- 5Y*
- 18.02%
- 10Y*
- 11.76%
UDN vs. IAU - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
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% |
IAU iShares Gold Trust | -4.73% | 63.95% | 26.85% | 12.84% | -0.63% | -4.00% | 25.03% | 17.98% | -1.76% | 12.91% |
Correlation
The correlation between UDN and IAU is 0.46, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.46 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.43 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.45 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.48 |
Correlation (All Time) Calculated using the full available price history since Mar 1, 2007 | 0.45 |
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Return for Risk
UDN vs. IAU — Risk / Return Rank
UDN
IAU
UDN vs. IAU - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Invesco DB US Dollar Index Bearish Fund (UDN) and iShares Gold Trust (IAU). 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.
| UDN | IAU | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -1.02 | ||
| Sortino ratioReturn per unit of downside risk | -1.43 | ||
| Omega ratioGain probability vs. loss probability | 0.97 | 1.17 | -0.20 |
| Calmar ratioReturn relative to maximum drawdown | -0.28 | 0.88 | -1.16 |
| Martin ratioReturn relative to average drawdown | -0.60 | 2.37 | -2.98 |
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Drawdowns
UDN vs. IAU - Drawdown Comparison
The maximum UDN drawdown since its inception was -41.67%, smaller than the maximum IAU drawdown of -45.14%. Use the drawdown chart below to compare losses from any high point for UDN and IAU.
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Drawdown Indicators
| UDN | IAU | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -41.67% | -45.14% | +3.47% |
Max Drawdown (1Y)Largest decline over 1 year | -4.91% | -24.40% | +19.49% |
Max Drawdown (3Y)Largest decline over 3 years | -8.59% | -24.40% | +15.81% |
Max Drawdown (5Y)Largest decline over 5 years | -20.82% | -24.40% | +3.58% |
Max Drawdown (10Y)Largest decline over 10 years | -25.72% | -24.40% | -1.32% |
Current DrawdownCurrent decline from peak | -28.97% | -23.87% | -5.10% |
Average DrawdownAverage peak-to-trough decline | -20.63% | -15.97% | -4.66% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 2.28% | 9.07% | -6.79% |
Volatility
UDN vs. IAU - Volatility Comparison
The current volatility for Invesco DB US Dollar Index Bearish Fund (UDN) is 1.37%, while iShares Gold Trust (IAU) has a volatility of 8.10%. This indicates that UDN experiences smaller price fluctuations and is considered to be less risky than IAU based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| UDN | IAU | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.37% | 8.10% | -6.73% |
Volatility (6M)Calculated over the trailing 6-month period | 4.34% | 24.23% | -19.89% |
Volatility (1Y)Calculated over the trailing 1-year period | 6.05% | 27.38% | -21.33% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 7.41% | 18.18% | -10.77% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 6.86% | 15.98% | -9.12% |
UDN vs. IAU - Expense Ratio Comparison
UDN has a 0.77% expense ratio, which is higher than IAU's 0.25% expense ratio.
Dividends
UDN vs. IAU - Dividend Comparison
UDN's dividend yield for the trailing twelve months is around 3.01%, while IAU has not paid dividends to shareholders.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 |
|---|---|---|---|---|---|---|---|---|---|---|
IAU iShares Gold Trust | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
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% |
Frequently Asked Questions
UDN and IAU have a correlation of 0.46, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
IAU has higher volatility (8.10%) compared to UDN (1.37%). In terms of maximum drawdown, UDN dropped -41.67% vs IAU's -45.14%.
On 10-year performance, IAU leads with 11.76% vs -0.45% for UDN. On fees, IAU is cheaper at 0.25% 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, IAU has performed better with a 11.76% return vs -0.45%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
IAU is cheaper with a 0.25% expense ratio, compared with 0.77% for UDN.
UDN has the higher dividend yield at 3.01%, compared with 0.00% for IAU.
UDN is categorized as Currency, while IAU is Gold. UDN tracks Deutsche Bank Short USD Currency Portfolio Index, while IAU tracks LBMA Gold Price. They also come from different issuers: Invesco and iShares. Their fees differ too: 0.77% for UDN and 0.25% for IAU.
IAU currently has the higher Sharpe Ratio (0.79 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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