UDN vs. PPA

Last updated Jun 3, 2026

UDN (Invesco DB US Dollar Index Bearish Fund) and PPA (Invesco Aerospace & Defense ETF) are both exchange-traded funds - UDN is a Currency fund tracking the Deutsche Bank Short USD Currency Portfolio Index, while PPA is a Industrials Equities fund tracking the SPADE Defense Index. Both are passively managed. Over the past 10 years, UDN returned -0.44%/yr vs 17.58%/yr for PPA. At a 0.16 correlation, their price movements are largely independent. UDN charges 0.77%/yr vs 0.61%/yr for PPA.

Performance

UDN vs. PPA - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Invesco DB US Dollar Index Bearish Fund (UDN) and Invesco Aerospace & Defense ETF (PPA). 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 PPA's 10.46% return. Over the past 10 years, UDN has underperformed PPA with an annualized return of -0.44%, while PPA has yielded a comparatively higher 17.58% annualized 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%

PPA

• 1D: -0.36%
• 1M: 4.46%
• YTD: 10.46%
• 6M: 16.02%
• 1Y: 29.93%
• 3Y*: 29.68%
• 5Y*: 18.46%
• 10Y*: 17.58%

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

UDN vs. PPA - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
UDN Invesco DB US Dollar Index Bearish Fund	-0.27%	12.37%	-4.53%	4.88%	-7.96%	-7.03%	6.20%	-0.97%	-5.02%	9.50%
PPA Invesco Aerospace & Defense ETF	10.46%	37.15%	25.28%	18.41%	9.52%	7.09%	0.45%	39.63%	-7.51%	30.10%

Correlation

The correlation between UDN and PPA is 0.24, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.24
Correlation (3Y) Calculated over the trailing 3-year period	0.16
Correlation (5Y) Calculated over the trailing 5-year period	0.24
Correlation (10Y) Calculated over the trailing 10-year period	0.15
Correlation (All Time) Calculated using the full available price history since Mar 2, 2007	0.16

Return for Risk

UDN vs. PPA — 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

PPA

PPA Risk / Return Rank: 43
PPA Sharpe Ratio Rank: 45
PPA Sortino Ratio Rank: 46
PPA Omega Ratio Rank: 41
PPA Calmar Ratio Rank: 44
PPA Martin Ratio Rank: 41

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. PPA - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Invesco DB US Dollar Index Bearish Fund (UDN) and Invesco Aerospace & Defense ETF (PPA). 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	PPA	Difference
Sharpe ratio Return per unit of total volatility	0.16	1.59	-1.43
Sortino ratio Return per unit of downside risk	0.27	2.29	-2.01
Omega ratio Gain probability vs. loss probability	1.03	1.27	-0.24
Calmar ratio Return relative to maximum drawdown	0.38	2.20	-1.83
Martin ratio Return relative to average drawdown	0.82	6.49	-5.67
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. PPA - Sharpe Ratio Comparison

The current UDN Sharpe Ratio is 0.16, which is lower than the PPA Sharpe Ratio of 1.59. The chart below compares the historical Sharpe Ratios of UDN and PPA, 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	PPA	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	0.16	1.59	-1.43
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	-0.08	1.00	-1.09
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	-0.06	0.86	-0.92
Sharpe Ratio (All Time) Calculated using the full available price history	-0.09	0.66	-0.75

Drawdowns

UDN vs. PPA - Drawdown Comparison

The maximum UDN drawdown since its inception was -41.67%, smaller than the maximum PPA drawdown of -57.37%. Use the drawdown chart below to compare losses from any high point for UDN and PPA.

Drawdown Indicators

	UDN	PPA	Difference
Max Drawdown Largest peak-to-trough decline	-41.67%	-57.37%	+15.70%
Max Drawdown (1Y) Largest decline over 1 year	-4.54%	-13.71%	+9.17%
Max Drawdown (3Y) Largest decline over 3 years	-8.59%	-15.24%	+6.65%
Max Drawdown (5Y) Largest decline over 5 years	-22.50%	-18.37%	-4.13%
Max Drawdown (10Y) Largest decline over 10 years	-25.72%	-43.92%	+18.20%
Current Drawdown Current decline from peak	-27.46%	-6.77%	-20.69%
Average Drawdown Average peak-to-trough decline	-20.61%	-9.18%	-11.43%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.10%	4.66%	-2.56%

Volatility

UDN vs. PPA - Volatility Comparison

The current volatility for Invesco DB US Dollar Index Bearish Fund (UDN) is 1.25%, while Invesco Aerospace & Defense ETF (PPA) has a volatility of 6.47%. This indicates that UDN experiences smaller price fluctuations and is considered to be less risky than PPA based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	UDN	PPA	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.25%	6.47%	-5.22%
Volatility (6M) Calculated over the trailing 6-month period	4.23%	16.06%	-11.83%
Volatility (1Y) Calculated over the trailing 1-year period	6.13%	18.94%	-12.81%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	7.42%	18.48%	-11.06%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	6.92%	20.63%	-13.71%

UDN vs. PPA - Expense Ratio Comparison

UDN has a 0.77% expense ratio, which is higher than PPA's 0.61% expense ratio.

Dividends

UDN vs. PPA - Dividend Comparison

UDN's dividend yield for the trailing twelve months is around 2.94%, more than PPA's 0.38% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
PPA Invesco Aerospace & Defense ETF	0.38%	0.42%	0.61%	0.67%	0.83%	0.59%	0.88%	0.95%	0.90%	0.67%	1.70%	1.41%
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%	0.00%	0.00%

Frequently Asked Questions

Can I hold both UDN and PPA in my portfolio?

UDN and PPA have a correlation of 0.24, 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 PPA?

PPA has higher volatility (6.47%) compared to UDN (1.25%). In terms of maximum drawdown, UDN dropped -41.67% vs PPA's -57.37%.

Which ETF is better, UDN or PPA?

On 10-year performance, PPA leads with 17.58% vs -0.44% for UDN. On fees, PPA is cheaper at 0.61% per year. On volatility, UDN has been the lower-risk option at 1.25%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, UDN or PPA?

Over the 10-year period, PPA has performed better with a 17.58% return vs -0.44%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, UDN or PPA?

PPA is cheaper with a 0.61% expense ratio, compared with 0.77% for UDN.

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

UDN has the higher dividend yield at 2.94%, compared with 0.38% for PPA.

What is the main difference between UDN and PPA?

UDN is categorized as Currency, while PPA is Industrials Equities. UDN tracks Deutsche Bank Short USD Currency Portfolio Index, while PPA tracks SPADE Defense Index. Their fees differ too: 0.77% for UDN and 0.61% for PPA.

Which has better risk-adjusted returns?

PPA currently has the higher Sharpe Ratio (1.59 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.