UDN vs. XLK
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 -0.29%/yr vs 24.16%/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
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Returns By Period
In the year-to-date period, UDN achieves a -1.59% return, which is significantly lower than XLK's 23.60% return. Over the past 10 years, UDN has underperformed XLK with an annualized return of -0.29%, while XLK has yielded a comparatively higher 24.16% annualized return.
UDN
- 1D
- -0.22%
- 1M
- -1.02%
- 6M
- -0.52%
- YTD
- -1.59%
- 1Y
- -0.81%
- 3Y*
- 1.74%
- 5Y*
- -0.35%
- 10Y*
- -0.29%
XLK
- 1D
- -2.24%
- 1M
- -4.67%
- 6M
- 22.34%
- YTD
- 23.60%
- 1Y
- 37.95%
- 3Y*
- 26.66%
- 5Y*
- 19.65%
- 10Y*
- 24.16%
UDN vs. XLK - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
UDN Invesco DB US Dollar Index Bearish Fund | -1.59% | 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 | 23.60% | 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 0.22, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.22 |
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 1, 2007 | 0.16 |
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Return for Risk
UDN vs. XLK — Risk / Return Rank
UDN
XLK
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.
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 | XLK | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -1.69 | ||
| Sortino ratioReturn per unit of downside risk | -2.20 | ||
| Omega ratioGain probability vs. loss probability | 0.98 | 1.26 | -0.28 |
| Calmar ratioReturn relative to maximum drawdown | -0.16 | 2.39 | -2.55 |
| Martin ratioReturn relative to average drawdown | -0.32 | 7.13 | -7.45 |
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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
| UDN | XLK | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -41.67% | -82.05% | +40.38% |
Max Drawdown (1Y)Largest decline over 1 year | -5.13% | -15.92% | +10.79% |
Max Drawdown (3Y)Largest decline over 3 years | -8.59% | -25.66% | +17.07% |
Max Drawdown (5Y)Largest decline over 5 years | -20.71% | -33.56% | +12.85% |
Max Drawdown (10Y)Largest decline over 10 years | -25.72% | -33.56% | +7.84% |
Current DrawdownCurrent decline from peak | -28.41% | -10.33% | -18.08% |
Average DrawdownAverage peak-to-trough decline | -20.65% | -34.84% | +14.19% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 2.51% | 5.34% | -2.83% |
Volatility
UDN vs. XLK - Volatility Comparison
The current volatility for Invesco DB US Dollar Index Bearish Fund (UDN) is 1.50%, while State Street Technology Select Sector SPDR ETF (XLK) has a volatility of 9.89%. 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
| UDN | XLK | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.50% | 9.89% | -8.39% |
Volatility (6M)Calculated over the trailing 6-month period | 4.39% | 20.95% | -16.56% |
Volatility (1Y)Calculated over the trailing 1-year period | 6.01% | 24.54% | -18.53% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 7.41% | 25.58% | -18.17% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 6.85% | 24.80% | -17.95% |
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 2.98%, more than XLK's 0.45% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
UDN Invesco DB US Dollar Index Bearish Fund | 2.98% | 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 | 0.45% | 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 0.22, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
XLK has higher volatility (9.89%) compared to UDN (1.50%). In terms of maximum drawdown, UDN dropped -41.67% vs XLK's -82.05%.
On 10-year performance, XLK leads with 24.16% vs -0.29% for UDN. On fees, XLK is cheaper at 0.08% per year. On volatility, UDN has been the lower-risk option at 1.50%. 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 24.16% return vs -0.29%. 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 2.98%, compared with 0.45% 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 (1.55 vs -0.14), 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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