UTWO vs. EUAD

Last updated Jun 4, 2026

UTWO (US Treasury 2 Year Note ETF) and EUAD (Select STOXX Europe Aerospace & Defense ETF) are both exchange-traded funds - UTWO is a Government Bonds fund tracking the ICE BofA Current 2 Year US Treasury Index - Benchmark TR Gross, while EUAD is a Aerospace & Defense fund tracking the STOXX Europe Total Market Aerospace & Defense Index. Both are passively managed. Over the past year, UTWO returned 3.13% vs -3.68% for EUAD. At a 0.14 correlation, their price movements are largely independent. UTWO charges 0.15%/yr vs 0.50%/yr for EUAD.

Performance

UTWO vs. EUAD - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in US Treasury 2 Year Note ETF (UTWO) and Select STOXX Europe Aerospace & Defense ETF (EUAD). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, UTWO achieves a 0.33% return, which is significantly higher than EUAD's -5.41% return.

UTWO

• 1D: -0.04%
• 1M: 0.07%
• YTD: 0.33%
• 6M: 0.63%
• 1Y: 3.13%
• 3Y*: 3.78%
• 5Y*: —
• 10Y*: —

EUAD

• 1D: -1.53%
• 1M: -1.14%
• YTD: -5.41%
• 6M: -1.74%
• 1Y: -3.68%
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

UTWO vs. EUAD - Yearly Performance Comparison

	2026 (YTD)	2025	2024
UTWO US Treasury 2 Year Note ETF	0.33%	4.79%	0.34%
EUAD Select STOXX Europe Aerospace & Defense ETF	-5.41%	74.51%	-3.62%

Correlation

The correlation between UTWO and EUAD 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 (All Time) Calculated using the full available price history since Oct 23, 2024	0.14

Return for Risk

UTWO vs. EUAD — Risk / Return Rank

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

UTWO

UTWO Risk / Return Rank: 75
UTWO Sharpe Ratio Rank: 71
UTWO Sortino Ratio Rank: 85
UTWO Omega Ratio Rank: 79
UTWO Calmar Ratio Rank: 70
UTWO Martin Ratio Rank: 70

EUAD

EUAD Risk / Return Rank: 7
EUAD Sharpe Ratio Rank: 7
EUAD Sortino Ratio Rank: 7
EUAD Omega Ratio Rank: 7
EUAD Calmar Ratio Rank: 7
EUAD Martin Ratio Rank: 7

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.

UTWO vs. EUAD - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for US Treasury 2 Year Note ETF (UTWO) and Select STOXX Europe Aerospace & Defense ETF (EUAD). 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.

	UTWO	EUAD	Difference
Sharpe ratio: Return per unit of total volatility	2.33	-0.13	+2.46
Sortino ratio: Return per unit of downside risk	3.84	0.02	+3.82
Omega ratio: Gain probability vs. loss probability	1.47	1.00	+0.47
Calmar ratio: Return relative to maximum drawdown	3.50	-0.17	+3.67
Martin ratio: Return relative to average drawdown	12.89	-0.41	+13.30
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

UTWO vs. EUAD - Sharpe Ratio Comparison

The current UTWO Sharpe Ratio is 2.33, which is higher than the EUAD Sharpe Ratio of -0.13. The chart below compares the historical Sharpe Ratios of UTWO and EUAD, 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

	UTWO	EUAD	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.33	-0.13	+2.46
Sharpe Ratio (All Time) Calculated using the full available price history	1.45	1.13	+0.32

Drawdowns

UTWO vs. EUAD - Drawdown Comparison

The maximum UTWO drawdown since its inception was -2.04%, smaller than the maximum EUAD drawdown of -22.04%. Use the drawdown chart below to compare losses from any high point for UTWO and EUAD.

Drawdown Indicators

	UTWO	EUAD	Difference
Max Drawdown Largest peak-to-trough decline	-2.04%	-22.04%	+20.00%
Max Drawdown (1Y) Largest decline over 1 year	-0.90%	-22.04%	+21.14%
Max Drawdown (3Y) Largest decline over 3 years	-1.08%	—	—
Current Drawdown Current decline from peak	-0.38%	-17.46%	+17.08%
Average Drawdown Average peak-to-trough decline	-0.49%	-5.62%	+5.13%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.24%	8.99%	-8.75%

Volatility

UTWO vs. EUAD - Volatility Comparison

The current volatility for US Treasury 2 Year Note ETF (UTWO) is 0.36%, while Select STOXX Europe Aerospace & Defense ETF (EUAD) has a volatility of 11.32%. This indicates that UTWO experiences smaller price fluctuations and is considered to be less risky than EUAD based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	UTWO	EUAD	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.36%	11.32%	-10.96%
Volatility (6M) Calculated over the trailing 6-month period	0.92%	24.20%	-23.28%
Volatility (1Y) Calculated over the trailing 1-year period	1.35%	29.14%	-27.79%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	2.07%	29.84%	-27.77%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	2.07%	29.84%	-27.77%

UTWO vs. EUAD - Expense Ratio Comparison

UTWO has a 0.15% expense ratio, which is lower than EUAD's 0.50% expense ratio.

Dividends

UTWO vs. EUAD - Dividend Comparison

UTWO's dividend yield for the trailing twelve months is around 3.50%, more than EUAD's 0.42% yield.

Position	TTM	2025	2024	2023	2022
EUAD Select STOXX Europe Aerospace & Defense ETF	0.42%	0.40%	0.10%	0.00%	0.00%
UTWO US Treasury 2 Year Note ETF	3.50%	3.63%	4.22%	4.39%	1.22%

Frequently Asked Questions

Can I hold both UTWO and EUAD in my portfolio?

UTWO and EUAD 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.

Which is riskier, UTWO or EUAD?

EUAD has higher volatility (11.32%) compared to UTWO (0.36%). In terms of maximum drawdown, UTWO dropped -2.04% vs EUAD's -22.04%.

Which ETF is better, UTWO or EUAD?

On 1-year performance, UTWO leads with 3.13% vs -3.68% for EUAD. On fees, UTWO is cheaper at 0.15% per year. On volatility, UTWO has been the lower-risk option at 0.36%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, UTWO or EUAD?

Over the 1-year period, UTWO has performed better with a 3.13% return vs -3.68%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, UTWO or EUAD?

UTWO is cheaper with a 0.15% expense ratio, compared with 0.50% for EUAD.

Which ETF pays a higher dividend yield, UTWO or EUAD?

UTWO has the higher dividend yield at 3.50%, compared with 0.42% for EUAD.

What is the main difference between UTWO and EUAD?

UTWO is categorized as Government Bonds, while EUAD is Aerospace & Defense. UTWO tracks ICE BofA Current 2 Year US Treasury Index - Benchmark TR Gross, while EUAD tracks STOXX Europe Total Market Aerospace & Defense Index. They also come from different issuers: US Benchmark Series and Select Funds. Their fees differ too: 0.15% for UTWO and 0.50% for EUAD.

Which has better risk-adjusted returns?

UTWO currently has the higher Sharpe Ratio (2.33 vs -0.13), 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.