UDN vs. TLT
Compare and contrast key facts about Invesco DB US Dollar Index Bearish Fund (UDN) and iShares 20+ Year Treasury Bond ETF (TLT).
UDN and TLT are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. UDN is a passively managed fund by Invesco that tracks the performance of the Deutsche Bank Short USD Currency Portfolio Index. It was launched on Feb 20, 2007. TLT is a passively managed fund by iShares that tracks the performance of the Barclays Capital U.S. 20+ Year Treasury Bond Index. It was launched on Jul 26, 2002. Both UDN and TLT are passive ETFs, meaning that they are not actively managed but aim to replicate the performance of the underlying index as closely as possible.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: UDN or TLT.
Key characteristics
| UDN | TLT | |
|---|---|---|
| YTD Return | 2.22% | 3.39% |
| 1Y Return | 6.91% | 10.47% |
| 3Y Return (Ann) | -1.86% | -9.81% |
| 5Y Return (Ann) | -0.15% | -5.09% |
| 10Y Return (Ann) | -2.19% | 0.97% |
| Sharpe Ratio | 1.12 | 0.64 |
| Daily Std Dev | 6.13% | 16.70% |
| Max Drawdown | -41.67% | -48.35% |
| Current Drawdown | -30.69% | -35.58% |
Correlation
The correlation between UDN and TLT is 0.04, which is considered to be low. This implies their price changes are not closely related. A low correlation is generally favorable for portfolio diversification, as it helps to reduce overall risk by spreading it across multiple assets with different performance patterns.
Performance
UDN vs. TLT - Performance Comparison
In the year-to-date period, UDN achieves a 2.22% return, which is significantly lower than TLT's 3.39% return. Over the past 10 years, UDN has underperformed TLT with an annualized return of -2.19%, while TLT has yielded a comparatively higher 0.97% annualized return. The chart below displays the growth of a $10,000 investment in both assets, with all prices adjusted for splits and dividends.
Compare stocks, funds, or ETFs
Search for stocks, ETFs, and funds for a quick comparison or use the comparison tool for more options.
UDN vs. TLT - Expense Ratio Comparison
UDN has a 0.77% expense ratio, which is higher than TLT's 0.15% expense ratio.
Risk-Adjusted Performance
UDN vs. TLT - Risk-Adjusted Performance 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.
Dividends
UDN vs. TLT - Dividend Comparison
UDN's dividend yield for the trailing twelve months is around 5.10%, more than TLT's 3.63% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
UDN Invesco DB US Dollar Index Bearish Fund | 5.10% | 5.21% | 0.69% | 0.00% | 0.00% | 1.38% | 1.26% | 0.11% | 0.00% | 0.00% | 0.00% | 0.00% |
TLT iShares 20+ Year Treasury Bond ETF | 3.63% | 3.38% | 2.67% | 1.50% | 1.50% | 2.27% | 2.63% | 2.43% | 2.60% | 2.61% | 2.67% | 3.26% |
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. For additional features, visit the drawdowns tool.
Volatility
UDN vs. TLT - Volatility Comparison
The current volatility for Invesco DB US Dollar Index Bearish Fund (UDN) is 1.72%, while iShares 20+ Year Treasury Bond ETF (TLT) has a volatility of 3.44%. 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.