USML vs. IFED

Last updated Jun 3, 2026

USML (ETRACS 2x Leveraged MSCI US Minimum Volatility Factor TR ETN) and IFED (ETRACS IFED Invest with the Fed TR Index ETN) are both Leveraged Equities funds from UBS - USML tracks the MSCI USA Minimum Volatility Index while IFED tracks the IFED Large-Cap US Equity Index - Benchmark TR Gross. Both are passively managed. Over the past 3 years, USML returned 16.76%/yr vs 17.19%/yr for IFED. A 0.69 correlation means they provide meaningful diversification when combined. USML charges 0.95%/yr vs 0.45%/yr for IFED.

Performance

USML vs. IFED - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in ETRACS 2x Leveraged MSCI US Minimum Volatility Factor TR ETN (USML) and ETRACS IFED Invest with the Fed TR Index ETN (IFED). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, USML achieves a 4.25% return, which is significantly higher than IFED's -2.31% return.

USML

• 1D: 0.14%
• 1M: 4.47%
• YTD: 4.25%
• 6M: 4.48%
• 1Y: 4.31%
• 3Y*: 16.76%
• 5Y*: 8.67%
• 10Y*: —

IFED

• 1D: -1.64%
• 1M: 6.11%
• YTD: -2.31%
• 6M: -1.82%
• 1Y: 4.42%
• 3Y*: 17.19%
• 5Y*: —
• 10Y*: —

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

USML vs. IFED - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021
USML ETRACS 2x Leveraged MSCI US Minimum Volatility Factor TR ETN	4.25%	9.33%	23.97%	11.37%	-22.87%	11.54%
IFED ETRACS IFED Invest with the Fed TR Index ETN	-2.31%	15.02%	23.04%	20.78%	-1.46%	8.46%

Correlation

The correlation between USML and IFED is 0.61, 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	0.61
Correlation (3Y) Calculated over the trailing 3-year period	0.62
Correlation (All Time) Calculated using the full available price history since Sep 16, 2021	0.69

The correlation between USML and IFED has been stable across timeframes, ranging from 0.61 to 0.69 - a consistent structural relationship.

Return for Risk

USML vs. IFED — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

USML

USML Risk / Return Rank: 12
USML Sharpe Ratio Rank: 12
USML Sortino Ratio Rank: 12
USML Omega Ratio Rank: 12
USML Calmar Ratio Rank: 12
USML Martin Ratio Rank: 13

IFED

IFED Risk / Return Rank: 12
IFED Sharpe Ratio Rank: 13
IFED Sortino Ratio Rank: 12
IFED Omega Ratio Rank: 12
IFED Calmar Ratio Rank: 12
IFED Martin Ratio Rank: 12

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.

USML vs. IFED - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for ETRACS 2x Leveraged MSCI US Minimum Volatility Factor TR ETN (USML) and ETRACS IFED Invest with the Fed TR Index ETN (IFED). 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.

	USML	IFED	Difference
Sharpe ratio Return per unit of total volatility	0.26	0.27	-0.01
Sortino ratio Return per unit of downside risk	0.48	0.51	-0.03
Omega ratio Gain probability vs. loss probability	1.06	1.06	-0.01
Calmar ratio Return relative to maximum drawdown	0.34	0.33	+0.01
Martin ratio Return relative to average drawdown	1.03	0.84	+0.20
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

USML vs. IFED - Sharpe Ratio Comparison

The current USML Sharpe Ratio is 0.26, which is comparable to the IFED Sharpe Ratio of 0.27. The chart below compares the historical Sharpe Ratios of USML and IFED, 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

	USML	IFED	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	0.26	0.27	-0.01
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.36	—	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.45	0.66	-0.21

Drawdowns

USML vs. IFED - Drawdown Comparison

The maximum USML drawdown since its inception was -35.34%, which is greater than IFED's maximum drawdown of -22.36%. Use the drawdown chart below to compare losses from any high point for USML and IFED.

Drawdown Indicators

	USML	IFED	Difference
Max Drawdown Largest peak-to-trough decline	-35.34%	-22.36%	-12.98%
Max Drawdown (1Y) Largest decline over 1 year	-13.09%	-14.65%	+1.56%
Max Drawdown (3Y) Largest decline over 3 years	-19.14%	-22.36%	+3.22%
Max Drawdown (5Y) Largest decline over 5 years	-35.34%	—	—
Current Drawdown Current decline from peak	-2.48%	-4.31%	+1.83%
Average Drawdown Average peak-to-trough decline	-10.42%	-5.84%	-4.58%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.33%	5.74%	-1.41%

Volatility

USML vs. IFED - Volatility Comparison

ETRACS 2x Leveraged MSCI US Minimum Volatility Factor TR ETN (USML) and ETRACS IFED Invest with the Fed TR Index ETN (IFED) have volatilities of 4.03% and 4.24%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	USML	IFED	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.03%	4.24%	-0.21%
Volatility (6M) Calculated over the trailing 6-month period	11.54%	12.80%	-1.26%
Volatility (1Y) Calculated over the trailing 1-year period	16.33%	16.17%	+0.16%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	24.47%	19.88%	+4.59%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	24.29%	19.88%	+4.41%

USML vs. IFED - Expense Ratio Comparison

USML has a 0.95% expense ratio, which is higher than IFED's 0.45% expense ratio.

Dividends

USML vs. IFED - Dividend Comparison

Neither USML nor IFED has paid dividends to shareholders.

Tickers have no history of dividend payments

Frequently Asked Questions

Can I hold both USML and IFED in my portfolio?

USML and IFED have a correlation of 0.61, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, USML or IFED?

IFED has higher volatility (4.24%) compared to USML (4.03%). In terms of maximum drawdown, USML dropped -35.34% vs IFED's -22.36%.

Which ETF is better, USML or IFED?

On 3-year performance, IFED leads with 17.19% vs 16.76% for USML. On fees, IFED is cheaper at 0.45% per year. On volatility, USML has been the lower-risk option at 4.03%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, USML or IFED?

Over the 3-year period, IFED has performed better with a 17.19% return vs 16.76%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, USML or IFED?

IFED is cheaper with a 0.45% expense ratio, compared with 0.95% for USML.

Which ETF pays a higher dividend yield, USML or IFED?

USML and IFED have nearly identical dividend yields, around 0.00%.

What is the main difference between USML and IFED?

USML tracks MSCI USA Minimum Volatility Index, while IFED tracks IFED Large-Cap US Equity Index - Benchmark TR Gross. Their fees differ too: 0.95% for USML and 0.45% for IFED.

Which has better risk-adjusted returns?

IFED currently has the higher Sharpe Ratio (0.27 vs 0.26), 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.