XDSQ vs. IFED

Last updated Jun 26, 2026

XDSQ (Innovator US Equity Accelerated ETF) and IFED (ETRACS IFED Invest with the Fed TR Index ETN) are both Leveraged Equities funds. XDSQ is actively managed, while IFED is passively managed. Over the past 3 years, XDSQ returned 14.49%/yr vs 17.39%/yr for IFED. A 0.78 correlation means they provide meaningful diversification when combined. XDSQ charges 0.79%/yr vs 0.45%/yr for IFED.

Performance

XDSQ vs. IFED - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Innovator US Equity Accelerated ETF (XDSQ) 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, XDSQ achieves a 3.09% return, which is significantly higher than IFED's -0.67% return.

XDSQ

• 1D: -0.01%
• 1M: 0.67%
• YTD: 3.09%
• 6M: 1.78%
• 1Y: 14.87%
• 3Y*: 14.49%
• 5Y*: 9.69%
• 10Y*: —

IFED

• 1D: 4.16%
• 1M: 5.15%
• YTD: -0.67%
• 6M: -1.84%
• 1Y: 4.90%
• 3Y*: 17.39%
• 5Y*: —
• 10Y*: —

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

XDSQ vs. IFED - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021
XDSQ Innovator US Equity Accelerated ETF	3.09%	14.22%	23.12%	23.00%	-16.78%	2.74%
IFED ETRACS IFED Invest with the Fed TR Index ETN	-0.67%	15.02%	23.04%	20.78%	-1.46%	8.46%

Correlation

The correlation between XDSQ and IFED is 0.57, 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	0.57
Correlation (3Y) Calculated over the trailing 3-year period	0.70
Correlation (All Time) Calculated using the full available price history since Sep 15, 2021	0.78

Over the past year, the correlation between XDSQ and IFED has dropped to 0.57 - well below their long-term average of 0.78, suggesting their price drivers have been diverging.

Return for Risk

XDSQ vs. IFED — Risk / Return Rank

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

XDSQ

XDSQ Risk / Return Rank: 45
XDSQ Sharpe Ratio Rank: 46
XDSQ Sortino Ratio Rank: 43
XDSQ Omega Ratio Rank: 54
XDSQ Calmar Ratio Rank: 34
XDSQ Martin Ratio Rank: 50

IFED

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

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.

XDSQ vs. IFED - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Innovator US Equity Accelerated ETF (XDSQ) 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.

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.

	XDSQ	IFED	Difference
Sharpe ratio: Return per unit of total volatility	1.42	0.28	+1.14
Sortino ratio: Return per unit of downside risk	1.97	0.55	+1.42
Omega ratio: Gain probability vs. loss probability	1.30	1.07	+0.23
Calmar ratio: Return relative to maximum drawdown	1.56	0.34	+1.22
Martin ratio: Return relative to average drawdown	7.42	0.83	+6.59

XDSQ vs. IFED - Sharpe Ratio Comparison

The current XDSQ Sharpe Ratio is 1.42, which is higher than the IFED Sharpe Ratio of 0.28. The chart below compares the historical Sharpe Ratios of XDSQ 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.

Drawdowns

XDSQ vs. IFED - Drawdown Comparison

The maximum XDSQ drawdown since its inception was -26.06%, which is greater than IFED's maximum drawdown of -22.36%. Use the drawdown chart below to compare losses from any high point for XDSQ and IFED.

Drawdown Indicators

	XDSQ	IFED	Difference
Max Drawdown Largest peak-to-trough decline	-26.06%	-22.36%	-3.70%
Max Drawdown (1Y) Largest decline over 1 year	-9.60%	-14.65%	+5.05%
Max Drawdown (3Y) Largest decline over 3 years	-19.15%	-22.36%	+3.21%
Max Drawdown (5Y) Largest decline over 5 years	-26.06%	—	—
Current Drawdown Current decline from peak	-0.01%	-2.71%	+2.70%
Average Drawdown Average peak-to-trough decline	-4.91%	-5.83%	+0.92%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.01%	5.90%	-3.89%

Volatility

XDSQ vs. IFED - Volatility Comparison

The current volatility for Innovator US Equity Accelerated ETF (XDSQ) is 0.59%, while ETRACS IFED Invest with the Fed TR Index ETN (IFED) has a volatility of 7.96%. This indicates that XDSQ experiences smaller price fluctuations and is considered to be less risky than IFED based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	XDSQ	IFED	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.59%	7.96%	-7.37%
Volatility (6M) Calculated over the trailing 6-month period	7.96%	14.49%	-6.53%
Volatility (1Y) Calculated over the trailing 1-year period	10.50%	17.38%	-6.88%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	15.28%	20.00%	-4.72%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	15.01%	20.00%	-4.99%

XDSQ vs. IFED - Expense Ratio Comparison

XDSQ has a 0.79% expense ratio, which is higher than IFED's 0.45% expense ratio.

Dividends

XDSQ vs. IFED - Dividend Comparison

Neither XDSQ nor IFED has paid dividends to shareholders.

Tickers have no history of dividend payments

Frequently Asked Questions

Can I hold both XDSQ and IFED in my portfolio?

XDSQ and IFED have a correlation of 0.57, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, XDSQ or IFED?

IFED has higher volatility (7.96%) compared to XDSQ (0.59%). In terms of maximum drawdown, XDSQ dropped -26.06% vs IFED's -22.36%.

Which ETF is better, XDSQ or IFED?

On 3-year performance, IFED leads with 17.39% vs 14.49% for XDSQ. On fees, IFED is cheaper at 0.45% per year. On volatility, XDSQ has been the lower-risk option at 0.59%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, XDSQ or IFED?

Over the 3-year period, IFED has performed better with a 17.39% return vs 14.49%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, XDSQ or IFED?

IFED is cheaper with a 0.45% expense ratio, compared with 0.79% for XDSQ.

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

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

What is the main difference between XDSQ and IFED?

They also come from different issuers: Innovator and UBS. Their fees differ too: 0.79% for XDSQ and 0.45% for IFED.

Which has better risk-adjusted returns?

XDSQ currently has the higher Sharpe Ratio (1.42 vs 0.28), 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.