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UDN vs. XLK
Performance
Return for Risk
Drawdowns
Volatility
Dividends

UDN vs. XLK

Last updated Jun 3, 2026

UDN (Invesco DB US Dollar Index Bearish Fund) and XLK (State Street Technology Select Sector SPDR ETF) are both exchange-traded funds - UDN is a Currency fund tracking the Deutsche Bank Short USD Currency Portfolio Index, while XLK is a Technology Equities fund tracking the S&P Technology Select Sector Daily Capped 35/20 Index. Both are passively managed. Over the past 10 years, UDN returned -0.44%/yr vs 25.97%/yr for XLK. At a 0.16 correlation, their price movements are largely independent. UDN charges 0.77%/yr vs 0.08%/yr for XLK.

Performance

UDN vs. XLK - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Invesco DB US Dollar Index Bearish Fund (UDN) and State Street Technology Select Sector SPDR ETF (XLK). The values are adjusted to include any dividend payments, if applicable.

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Returns By Period

In the year-to-date period, UDN achieves a -0.27% return, which is significantly lower than XLK's 37.85% return. Over the past 10 years, UDN has underperformed XLK with an annualized return of -0.44%, while XLK has yielded a comparatively higher 25.97% 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%

XLK

1D
1.25%
1M
22.45%
YTD
37.85%
6M
37.41%
1Y
71.15%
3Y*
34.35%
5Y*
24.55%
10Y*
25.97%
*Multi-year figures are annualized to reflect compound growth (CAGR)

UDN vs. XLK - Yearly Performance Comparison

2026 (YTD)202520242023202220212020201920182017
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%
XLK
State Street Technology Select Sector SPDR ETF		37.85%24.61%21.63%56.02%-27.73%34.74%43.62%49.86%-1.68%34.26%

Correlation

The correlation between UDN and XLK is 0.19, which is low. Their price movements are largely independent, making them effective diversification partners.

Correlation
Correlation (1Y)
Calculated over the trailing 1-year period

0.19

Correlation (3Y)
Calculated over the trailing 3-year period

0.13

Correlation (5Y)
Calculated over the trailing 5-year period

0.22

Correlation (10Y)
Calculated over the trailing 10-year period

0.14

Correlation (All Time)
Calculated using the full available price history since Mar 2, 2007

0.16

Compare stocks, funds, or ETFs

Search for stocks, ETFs, and funds for a quick comparison or use the comparison tool for more options.

Invesco DB US Dollar Index Bearish Fund

State Street Technology Select Sector SPDR ETF

Often compared with UDN:
UDN vs. UUPUDN vs. FXEUDN vs. CEWUDN vs. VOOUDN vs. SPYUDN vs. BTC-USDUDN vs. IGOV
Often compared with XLK:
XLK vs. QQQXLK vs. VGTXLK vs. SMHXLK vs. SPYXLK vs. FTECXLK vs. IYWXLK vs. XLE

Return for Risk

UDN vs. XLK — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.
UDN
UDN Risk / Return Rank: 1111
Overall Rank
UDN Sharpe Ratio Rank: 1111
Sharpe Ratio Rank
UDN Sortino Ratio Rank: 1010
Sortino Ratio Rank
UDN Omega Ratio Rank: 1010
Omega Ratio Rank
UDN Calmar Ratio Rank: 1313
Calmar Ratio Rank
UDN Martin Ratio Rank: 1212
Martin Ratio Rank
XLK
XLK Risk / Return Rank: 8686
Overall Rank
XLK Sharpe Ratio Rank: 9393
Sharpe Ratio Rank
XLK Sortino Ratio Rank: 8989
Sortino Ratio Rank
XLK Omega Ratio Rank: 8787
Omega Ratio Rank
XLK Calmar Ratio Rank: 8484
Calmar Ratio Rank
XLK Martin Ratio Rank: 7878
Martin Ratio Rank
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. XLK - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Invesco DB US Dollar Index Bearish Fund (UDN) and State Street Technology Select Sector SPDR ETF (XLK). 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.

UDNXLKDifference

Sharpe ratio

Return per unit of total volatility

0.16

3.44

-3.28

Sortino ratio

Return per unit of downside risk

0.27

4.12

-3.84

Omega ratio

Gain probability vs. loss probability

1.03

1.55

-0.52

Calmar ratio

Return relative to maximum drawdown

0.38

4.56

-4.18

Martin ratio

Return relative to average drawdown

0.82

15.32

-14.51

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. XLK - Sharpe Ratio Comparison

The current UDN Sharpe Ratio is 0.16, which is lower than the XLK Sharpe Ratio of 3.44. The chart below compares the historical Sharpe Ratios of UDN and XLK, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

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Sharpe Ratios by Period

UDNXLKDifference

Sharpe Ratio (1Y)

Calculated over the trailing 1-year period

0.16

3.44

-3.28

Sharpe Ratio (5Y)

Calculated over the trailing 5-year period

-0.08

0.99

-1.08

Sharpe Ratio (10Y)

Calculated over the trailing 10-year period

-0.06

1.06

-1.13

Sharpe Ratio (All Time)

Calculated using the full available price history

-0.09

0.42

-0.51

Drawdowns

UDN vs. XLK - Drawdown Comparison

The maximum UDN drawdown since its inception was -41.67%, smaller than the maximum XLK drawdown of -82.05%. Use the drawdown chart below to compare losses from any high point for UDN and XLK.

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Drawdown Indicators

UDNXLKDifference

Max Drawdown

Largest peak-to-trough decline

-41.67%

-82.05%

+40.38%

Max Drawdown (1Y)

Largest decline over 1 year

-4.54%

-15.92%

+11.38%

Max Drawdown (3Y)

Largest decline over 3 years

-8.59%

-25.66%

+17.07%

Max Drawdown (5Y)

Largest decline over 5 years

-22.50%

-33.56%

+11.06%

Max Drawdown (10Y)

Largest decline over 10 years

-25.72%

-33.56%

+7.84%

Current Drawdown

Current decline from peak

-27.46%

0.00%

-27.46%

Average Drawdown

Average peak-to-trough decline

-20.61%

-34.96%

+14.35%

Ulcer Index

Depth and duration of drawdowns from previous peaks

2.10%

4.74%

-2.64%

Volatility

UDN vs. XLK - Volatility Comparison

The current volatility for Invesco DB US Dollar Index Bearish Fund (UDN) is 1.25%, while State Street Technology Select Sector SPDR ETF (XLK) has a volatility of 6.74%. This indicates that UDN experiences smaller price fluctuations and is considered to be less risky than XLK based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

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Volatility by Period

UDNXLKDifference

Volatility (1M)

Calculated over the trailing 1-month period

1.25%

6.74%

-5.49%

Volatility (6M)

Calculated over the trailing 6-month period

4.23%

16.64%

-12.41%

Volatility (1Y)

Calculated over the trailing 1-year period

6.13%

20.80%

-14.67%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

7.42%

24.90%

-17.48%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

6.92%

24.49%

-17.57%

UDN vs. XLK - Expense Ratio Comparison

UDN has a 0.77% expense ratio, which is higher than XLK's 0.08% expense ratio.

Dividends

UDN vs. XLK - Dividend Comparison

UDN's dividend yield for the trailing twelve months is around 2.94%, more than XLK's 0.39% yield.

PositionTTM20252024202320222021202020192018201720162015
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%
XLK
State Street Technology Select Sector SPDR ETF		0.39%0.54%0.66%0.76%1.04%0.65%0.92%1.16%1.60%1.37%1.74%1.79%

Frequently Asked Questions

UDN and XLK have a correlation of 0.19, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

XLK has higher volatility (6.74%) compared to UDN (1.25%). In terms of maximum drawdown, UDN dropped -41.67% vs XLK's -82.05%.

On 10-year performance, XLK leads with 25.97% vs -0.44% for UDN. On fees, XLK is cheaper at 0.08% 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.

Over the 10-year period, XLK has performed better with a 25.97% return vs -0.44%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

XLK is cheaper with a 0.08% expense ratio, compared with 0.77% for UDN.

UDN has the higher dividend yield at 2.94%, compared with 0.39% for XLK.

UDN is categorized as Currency, while XLK is Technology Equities. UDN tracks Deutsche Bank Short USD Currency Portfolio Index, while XLK tracks S&P Technology Select Sector Daily Capped 35/20 Index. They also come from different issuers: Invesco and State Street. Their fees differ too: 0.77% for UDN and 0.08% for XLK.

XLK currently has the higher Sharpe Ratio (3.44 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.

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