VGMS vs. UUP

Last updated Jul 14, 2026

VGMS (Vanguard Multi-Sector Income Bond ETF) and UUP (Invesco DB US Dollar Index Bullish Fund) are both exchange-traded funds - VGMS is a Multisector Bonds fund actively managed by Vanguard, while UUP is a Currency fund tracking the Deutsche Bank Long US Dollar Index (USDX) Futures Index. VGMS is actively managed, while UUP is passively managed. Over the past year, VGMS returned 5.79% vs 8.28% for UUP. At a correlation of -0.49, they often move in opposite directions. VGMS charges 0.30%/yr vs 0.75%/yr for UUP.

Performance

VGMS vs. UUP - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Multi-Sector Income Bond ETF (VGMS) and Invesco DB US Dollar Index Bullish Fund (UUP). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VGMS achieves a 1.30% return, which is significantly lower than UUP's 5.44% return.

VGMS

• 1D: -0.29%
• 1M: -0.14%
• 6M: 1.03%
• YTD: 1.30%
• 1Y: 5.79%
• 3Y*: —
• 5Y*: —
• 10Y*: —

UUP

• 1D: 0.39%
• 1M: 1.97%
• 6M: 4.47%
• YTD: 5.44%
• 1Y: 8.28%
• 3Y*: 5.86%
• 5Y*: 5.89%
• 10Y*: 3.17%

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

VGMS vs. UUP - Yearly Performance Comparison

	2026 (YTD)	2025
VGMS Vanguard Multi-Sector Income Bond ETF	1.30%	5.51%
UUP Invesco DB US Dollar Index Bullish Fund	5.44%	2.02%

Correlation

The correlation between VGMS and UUP is -0.47, meaning they tend to move in opposite directions. This is especially valuable for risk management - when one declines, the other has historically tended to hold steady or rise.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	-0.47
Correlation (All Time) Calculated using the full available price history since Jun 11, 2025	-0.49

Return for Risk

VGMS vs. UUP — Risk / Return Rank

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

VGMS

VGMS Risk / Return Rank: 70
VGMS Sharpe Ratio Rank: 70
VGMS Sortino Ratio Rank: 74
VGMS Omega Ratio Rank: 73
VGMS Calmar Ratio Rank: 60
VGMS Martin Ratio Rank: 74

UUP

UUP Risk / Return Rank: 51
UUP Sharpe Ratio Rank: 50
UUP Sortino Ratio Rank: 50
UUP Omega Ratio Rank: 49
UUP Calmar Ratio Rank: 57
UUP Martin Ratio Rank: 47

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.

VGMS vs. UUP - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Multi-Sector Income Bond ETF (VGMS) and Invesco DB US Dollar Index Bullish Fund (UUP). 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.

	VGMS	UUP	Difference
Sharpe ratio: Return per unit of total volatility	1.80	1.38	+0.42
Sortino ratio: Return per unit of downside risk	2.65	1.99	+0.67
Omega ratio: Gain probability vs. loss probability	1.34	1.25	+0.09
Calmar ratio: Return relative to maximum drawdown	2.36	2.28	+0.08
Martin ratio: Return relative to average drawdown	10.76	6.26	+4.50

VGMS vs. UUP - Sharpe Ratio Comparison

The current VGMS Sharpe Ratio is 1.80, which is higher than the UUP Sharpe Ratio of 1.38. The chart below compares the historical Sharpe Ratios of VGMS and UUP, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

VGMS vs. UUP - Drawdown Comparison

The maximum VGMS drawdown since its inception was -2.46%, smaller than the maximum UUP drawdown of -22.19%. Use the drawdown chart below to compare losses from any high point for VGMS and UUP.

Drawdown Indicators

	VGMS	UUP	Difference
Max Drawdown Largest peak-to-trough decline	-2.46%	-22.19%	+19.73%
Max Drawdown (1Y) Largest decline over 1 year	-2.46%	-3.65%	+1.19%
Max Drawdown (3Y) Largest decline over 3 years	—	-10.05%	—
Max Drawdown (5Y) Largest decline over 5 years	—	-10.37%	—
Max Drawdown (10Y) Largest decline over 10 years	—	-14.24%	—
Current Drawdown Current decline from peak	-0.59%	-1.26%	+0.67%
Average Drawdown Average peak-to-trough decline	-0.30%	-8.88%	+8.58%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.54%	1.33%	-0.79%

Volatility

VGMS vs. UUP - Volatility Comparison

The current volatility for Vanguard Multi-Sector Income Bond ETF (VGMS) is 0.94%, while Invesco DB US Dollar Index Bullish Fund (UUP) has a volatility of 1.45%. This indicates that VGMS experiences smaller price fluctuations and is considered to be less risky than UUP based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VGMS	UUP	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.94%	1.45%	-0.51%
Volatility (6M) Calculated over the trailing 6-month period	2.68%	4.34%	-1.66%
Volatility (1Y) Calculated over the trailing 1-year period	3.24%	6.03%	-2.79%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	3.21%	7.22%	-4.01%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	3.21%	6.90%	-3.69%

VGMS vs. UUP - Expense Ratio Comparison

VGMS has a 0.30% expense ratio, which is lower than UUP's 0.75% expense ratio.

Dividends

VGMS vs. UUP - Dividend Comparison

VGMS's dividend yield for the trailing twelve months is around 5.39%, more than UUP's 3.25% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017
UUP Invesco DB US Dollar Index Bullish Fund	3.25%	3.43%	4.48%	6.44%	0.89%	0.00%	0.00%	2.03%	1.08%	0.10%
VGMS Vanguard Multi-Sector Income Bond ETF	5.39%	2.94%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both VGMS and UUP in my portfolio?

VGMS and UUP have a correlation of -0.47, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, VGMS or UUP?

UUP has higher volatility (1.45%) compared to VGMS (0.94%). In terms of maximum drawdown, VGMS dropped -2.46% vs UUP's -22.19%.

Which ETF is better, VGMS or UUP?

On 1-year performance, UUP leads with 8.28% vs 5.79% for VGMS. On fees, VGMS is cheaper at 0.30% per year. On volatility, VGMS has been the lower-risk option at 0.94%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, VGMS or UUP?

Over the 1-year period, UUP has performed better with a 8.28% return vs 5.79%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VGMS or UUP?

VGMS is cheaper with a 0.30% expense ratio, compared with 0.75% for UUP.

Which ETF pays a higher dividend yield, VGMS or UUP?

VGMS has the higher dividend yield at 5.39%, compared with 3.25% for UUP.

What is the main difference between VGMS and UUP?

VGMS is categorized as Multisector Bonds, while UUP is Currency. They also come from different issuers: Vanguard and Invesco. Their fees differ too: 0.30% for VGMS and 0.75% for UUP.

Which has better risk-adjusted returns?

VGMS currently has the higher Sharpe Ratio (1.80 vs 1.38), 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.