UDN vs. TLT
UDN (Invesco DB US Dollar Index Bearish Fund) and TLT (iShares 20+ Year Treasury Bond ETF) are both exchange-traded funds - UDN is a Currency fund tracking the Deutsche Bank Short USD Currency Portfolio Index, while TLT is a Government Bonds fund tracking the ICE U.S. Treasury 20+ Year Bond Index. Both are passively managed. Over the past 10 years, UDN returned -0.35%/yr vs -2.17%/yr for TLT. At a 0.06 correlation, their price movements are largely independent. UDN charges 0.77%/yr vs 0.15%/yr for TLT.
Performance
UDN vs. TLT - Performance Comparison
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Returns By Period
In the year-to-date period, UDN achieves a -2.14% return, which is significantly lower than TLT's -1.48% return. Over the past 10 years, UDN has outperformed TLT with an annualized return of -0.35%, while TLT has yielded a comparatively lower -2.17% annualized return.
UDN
- 1D
- -0.28%
- 1M
- -1.38%
- 6M
- -1.60%
- YTD
- -2.14%
- 1Y
- -1.78%
- 3Y*
- 1.62%
- 5Y*
- -0.53%
- 10Y*
- -0.35%
TLT
- 1D
- -0.59%
- 1M
- -1.74%
- 6M
- -2.05%
- YTD
- -1.48%
- 1Y
- 2.34%
- 3Y*
- -2.07%
- 5Y*
- -7.47%
- 10Y*
- -2.17%
UDN vs. TLT - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
UDN Invesco DB US Dollar Index Bearish Fund | -2.14% | 12.37% | -4.53% | 4.88% | -7.96% | -7.03% | 6.20% | -0.97% | -5.02% | 9.50% |
TLT iShares 20+ Year Treasury Bond ETF | -1.48% | 4.25% | -8.05% | 2.77% | -31.23% | -4.60% | 18.15% | 14.12% | -1.61% | 9.18% |
Correlation
The correlation between UDN and TLT is 0.35, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.35 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.31 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.24 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.18 |
Correlation (All Time) Calculated using the full available price history since Mar 1, 2007 | 0.06 |
Over the past year, UDN and TLT have become more correlated (0.35) than their long-term average of 0.06, meaning their price movements have been converging.
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Return for Risk
UDN vs. TLT — Risk / Return Rank
UDN
TLT
UDN vs. TLT - 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 20+ Year Treasury Bond ETF (TLT). 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 | TLT | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.55 | ||
| Sortino ratioReturn per unit of downside risk | -0.82 | ||
| Omega ratioGain probability vs. loss probability | 0.96 | 1.05 | -0.09 |
| Calmar ratioReturn relative to maximum drawdown | -0.35 | 0.31 | -0.66 |
| Martin ratioReturn relative to average drawdown | -0.72 | 0.72 | -1.44 |
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Drawdowns
UDN vs. TLT - Drawdown Comparison
The maximum UDN drawdown since its inception was -41.67%, smaller than the maximum TLT drawdown of -48.35%. Use the drawdown chart below to compare losses from any high point for UDN and TLT.
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Drawdown Indicators
| UDN | TLT | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -41.67% | -48.35% | +6.68% |
Max Drawdown (1Y)Largest decline over 1 year | -5.13% | -7.58% | +2.45% |
Max Drawdown (3Y)Largest decline over 3 years | -8.59% | -18.88% | +10.29% |
Max Drawdown (5Y)Largest decline over 5 years | -20.71% | -43.70% | +22.99% |
Max Drawdown (10Y)Largest decline over 10 years | -25.72% | -48.35% | +22.63% |
Current DrawdownCurrent decline from peak | -28.81% | -41.16% | +12.35% |
Average DrawdownAverage peak-to-trough decline | -20.65% | -13.93% | -6.72% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 2.47% | 3.25% | -0.78% |
Volatility
UDN vs. TLT - Volatility Comparison
The current volatility for Invesco DB US Dollar Index Bearish Fund (UDN) is 1.41%, while iShares 20+ Year Treasury Bond ETF (TLT) has a volatility of 2.92%. This indicates that UDN experiences smaller price fluctuations and is considered to be less risky than TLT based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| UDN | TLT | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.41% | 2.92% | -1.51% |
Volatility (6M)Calculated over the trailing 6-month period | 4.36% | 6.83% | -2.47% |
Volatility (1Y)Calculated over the trailing 1-year period | 6.01% | 9.40% | -3.39% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 7.40% | 15.80% | -8.40% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 6.85% | 14.84% | -7.99% |
UDN vs. TLT - Expense Ratio Comparison
UDN has a 0.77% expense ratio, which is higher than TLT's 0.15% expense ratio.
Dividends
UDN vs. TLT - Dividend Comparison
UDN's dividend yield for the trailing twelve months is around 3.00%, less than TLT's 4.65% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
TLT iShares 20+ Year Treasury Bond ETF | 4.65% | 4.43% | 4.30% | 3.38% | 2.67% | 1.50% | 1.50% | 2.27% | 2.63% | 2.43% | 2.60% | 2.61% |
UDN Invesco DB US Dollar Index Bearish Fund | 3.00% | 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
UDN and TLT have a correlation of 0.35, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
TLT has higher volatility (2.92%) compared to UDN (1.41%). In terms of maximum drawdown, UDN dropped -41.67% vs TLT's -48.35%.
On 10-year performance, UDN leads with -0.35% vs -2.17% for TLT. On fees, TLT is cheaper at 0.15% per year. On volatility, UDN has been the lower-risk option at 1.41%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, UDN has performed better with a -0.35% return vs -2.17%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
TLT is cheaper with a 0.15% expense ratio, compared with 0.77% for UDN.
TLT has the higher dividend yield at 4.65%, compared with 3.00% for UDN.
UDN is categorized as Currency, while TLT is Government Bonds. UDN tracks Deutsche Bank Short USD Currency Portfolio Index, while TLT tracks ICE U.S. Treasury 20+ Year Bond Index. They also come from different issuers: Invesco and iShares. Their fees differ too: 0.77% for UDN and 0.15% for TLT.
TLT currently has the higher Sharpe Ratio (0.25 vs -0.30), 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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