UDN vs. VEA

Last updated Jun 3, 2026

UDN (Invesco DB US Dollar Index Bearish Fund) and VEA (Vanguard FTSE Developed Markets ETF) are both exchange-traded funds - UDN is a Currency fund tracking the Deutsche Bank Short USD Currency Portfolio Index, while VEA is a Foreign Large Cap Equities fund tracking the FTSE Developed All Cap ex US Index. Both are passively managed. Over the past 10 years, UDN returned -0.44%/yr vs 10.27%/yr for VEA. At a 0.45 correlation, their price movements are largely independent. UDN charges 0.77%/yr vs 0.03%/yr for VEA.

Performance

UDN vs. VEA - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Invesco DB US Dollar Index Bearish Fund (UDN) and Vanguard FTSE Developed Markets ETF (VEA). 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 VEA's 15.96% return. Over the past 10 years, UDN has underperformed VEA with an annualized return of -0.44%, while VEA has yielded a comparatively higher 10.27% 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%

VEA

• 1D: 0.63%
• 1M: 5.24%
• YTD: 15.96%
• 6M: 19.86%
• 1Y: 32.71%
• 3Y*: 20.13%
• 5Y*: 10.01%
• 10Y*: 10.27%

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

UDN vs. VEA - 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%
VEA Vanguard FTSE Developed Markets ETF	15.96%	35.16%	3.15%	17.93%	-15.34%	11.66%	9.71%	22.62%	-14.75%	26.42%

Correlation

The correlation between UDN and VEA is 0.58, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.58
Correlation (3Y) Calculated over the trailing 3-year period	0.53
Correlation (5Y) Calculated over the trailing 5-year period	0.58
Correlation (10Y) Calculated over the trailing 10-year period	0.46
Correlation (All Time) Calculated using the full available price history since Jul 27, 2007	0.45

The correlation between UDN and VEA shifts across timeframes, from 0.45 (all time) to 0.58 (5 years), reflecting how their relationship changes across market environments.

Return for Risk

UDN vs. VEA — 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

VEA

VEA Risk / Return Rank: 61
VEA Sharpe Ratio Rank: 62
VEA Sortino Ratio Rank: 61
VEA Omega Ratio Rank: 62
VEA Calmar Ratio Rank: 59
VEA Martin Ratio Rank: 63

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. VEA - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Invesco DB US Dollar Index Bearish Fund (UDN) and Vanguard FTSE Developed Markets ETF (VEA). 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	VEA	Difference
Sharpe ratio Return per unit of total volatility	0.16	2.10	-1.95
Sortino ratio Return per unit of downside risk	0.27	2.89	-2.62
Omega ratio Gain probability vs. loss probability	1.03	1.38	-0.35
Calmar ratio Return relative to maximum drawdown	0.38	2.94	-2.57
Martin ratio Return relative to average drawdown	0.82	11.50	-10.69
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. VEA - Sharpe Ratio Comparison

The current UDN Sharpe Ratio is 0.16, which is lower than the VEA Sharpe Ratio of 2.10. The chart below compares the historical Sharpe Ratios of UDN and VEA, 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	VEA	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	0.16	2.10	-1.95
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	-0.08	0.61	-0.69
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	-0.06	0.59	-0.66
Sharpe Ratio (All Time) Calculated using the full available price history	-0.09	0.25	-0.34

Drawdowns

UDN vs. VEA - Drawdown Comparison

The maximum UDN drawdown since its inception was -41.67%, smaller than the maximum VEA drawdown of -60.68%. Use the drawdown chart below to compare losses from any high point for UDN and VEA.

Drawdown Indicators

	UDN	VEA	Difference
Max Drawdown Largest peak-to-trough decline	-41.67%	-60.68%	+19.01%
Max Drawdown (1Y) Largest decline over 1 year	-4.54%	-11.63%	+7.09%
Max Drawdown (3Y) Largest decline over 3 years	-8.59%	-13.45%	+4.86%
Max Drawdown (5Y) Largest decline over 5 years	-22.50%	-29.71%	+7.21%
Max Drawdown (10Y) Largest decline over 10 years	-25.72%	-35.73%	+10.01%
Current Drawdown Current decline from peak	-27.46%	0.00%	-27.46%
Average Drawdown Average peak-to-trough decline	-20.61%	-13.29%	-7.32%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.10%	2.98%	-0.88%

Volatility

UDN vs. VEA - Volatility Comparison

The current volatility for Invesco DB US Dollar Index Bearish Fund (UDN) is 1.25%, while Vanguard FTSE Developed Markets ETF (VEA) has a volatility of 5.73%. This indicates that UDN experiences smaller price fluctuations and is considered to be less risky than VEA based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	UDN	VEA	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.25%	5.73%	-4.48%
Volatility (6M) Calculated over the trailing 6-month period	4.23%	13.30%	-9.07%
Volatility (1Y) Calculated over the trailing 1-year period	6.13%	15.66%	-9.53%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	7.42%	16.55%	-9.13%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	6.92%	17.36%	-10.44%

UDN vs. VEA - Expense Ratio Comparison

UDN has a 0.77% expense ratio, which is higher than VEA's 0.03% expense ratio.

Dividends

UDN vs. VEA - Dividend Comparison

UDN's dividend yield for the trailing twelve months is around 2.94%, more than VEA's 2.59% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
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%
VEA Vanguard FTSE Developed Markets ETF	2.59%	3.22%	3.35%	3.15%	2.91%	3.16%	2.04%	3.04%	3.35%	2.77%	3.05%	2.92%

Frequently Asked Questions

Can I hold both UDN and VEA in my portfolio?

UDN and VEA have a correlation of 0.58, 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 VEA?

VEA has higher volatility (5.73%) compared to UDN (1.25%). In terms of maximum drawdown, UDN dropped -41.67% vs VEA's -60.68%.

Which ETF is better, UDN or VEA?

On 10-year performance, VEA leads with 10.27% vs -0.44% for UDN. On fees, VEA is cheaper at 0.03% 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 VEA?

Over the 10-year period, VEA has performed better with a 10.27% 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 VEA?

VEA is cheaper with a 0.03% expense ratio, compared with 0.77% for UDN.

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

UDN has the higher dividend yield at 2.94%, compared with 2.59% for VEA.

What is the main difference between UDN and VEA?

UDN is categorized as Currency, while VEA is Foreign Large Cap Equities. UDN tracks Deutsche Bank Short USD Currency Portfolio Index, while VEA tracks FTSE Developed All Cap ex US Index. They also come from different issuers: Invesco and Vanguard. Their fees differ too: 0.77% for UDN and 0.03% for VEA.

Which has better risk-adjusted returns?

VEA currently has the higher Sharpe Ratio (2.10 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.