At a glance
UDN charges 0.0% a year, below the 0.4% average of the 1 funds most like it. It has $112.6M in assets; it paid 3.04% of its price in distributions over the past 12 months, annual. Over the past year it returned −1.9% with distributions reinvested (S&P 500: +11.5%); over three years it returned +3.3% a year. At its worst it fell 17.6% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 31 months after the low.
The short version
Invesco DB US Dollar Index Bearish Fund (UDN) is a commodity pool that holds short positions in US Dollar Index futures, so it aims to rise when the US dollar weakens against six major currencies, led by the euro. It is an unleveraged way to bet against the broad dollar. It also earns interest on its Treasury collateral, and it sends investors a Schedule K-1 tax form instead of a 1099.
Price history
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UDN -1.9% over the year to Oct 27, 2026, total return with distributions reinvested.
How it has behaved
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | Since start | |
|---|---|---|---|---|---|---|
| UDN price data to Oct 27, 2026 | -2.7% | -1.9% | +3.3% | -0.3% | — | +0.2% |
- Over the year to Oct 27, 2026, UDN returned -1.9%.
- Its 5-year annualized return was -0.3%.
- Its worst full calendar year was 2022 (-8.0%); its best was 2025 (+12.4%).
- The deepest fall in its price history was 23.3% (Jan 6, 2021 to Sep 27, 2022), not yet recovered.
Show as a table
| Year | Price data |
|---|---|
| 2026 (to date) | -2.7% |
| 2025 | +12.4% |
| 2024 | -4.5% |
| 2023 | +4.9% |
| 2022 | -8.0% |
| 2021 | -7.0% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Not in the price data, which starts Jun 2, 2020 |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Not in the price data, which starts Jun 2, 2020 |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 15.6% over that stretch · deepest drop along the way 17.6%, back to its old high 30.6 months after the low |
Dividends and income
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2025 | $0.5400 | -39.3% |
| 2024 | $0.8900 | -7.3% |
| 2023 | $0.9600 | +638.5% |
| 2022 | $0.1300 |
What's inside
The fund holds futures contracts and the cash and Treasury bills backing them, not the commodity itself; its net assets were $112.6M as of Jun 30, 2026 (per its 10-Q). As a commodity pool it files 10-Q and 10-K reports instead of N-PORT holdings reports, so there is no holdings list.
How it works
UDN is built to rise when the US dollar falls. Rather than holding foreign cash, it holds short positions in futures on the ICE U.S. Dollar Index, called DX Contracts. A futures contract locks in a price for a later date, and a short position profits when that price drops. The fund aims to track the Deutsche Bank Short USD Currency Portfolio Index–Excess Return. It gains when the dollar weakens against six currencies and loses when the dollar strengthens.
The dollar index sets a weight for each currency: euro 57.6%, Japanese yen 13.6%, British pound 11.9%, Canadian dollar 9.1%, Swedish krona 4.2% and Swiss franc 3.6%. These weights have changed only once, when the euro replaced several European currencies in 1999. DX Contracts expire each March, June, September and December. Before each expiry, the index shifts into the next contract over three business days, a third at a time. The price gap between the old and new contracts can help or hurt returns.
The cash backing the futures is held as collateral in US Treasury securities, money market funds and Treasury bill ETFs. The fund's return also reflects the interest from those holdings, minus its expenses. Invesco Capital Management runs UDN as a commodity pool, which is a fund that trades futures. If DX Contracts become impractical to trade, it may use similar futures, forwards or swaps instead.
What it really costs
- UDN charges 0% a year, versus an average of 0.4% for the similar funds below.
Structure and tax notes
- A commodity pool: it holds futures contracts (and the cash and Treasury bills backing them), not the commodity itself, and it is not a 1940 Act investment company, so it lacks some fund-specific investor protections. It is taxed as a partnership: investors get a Schedule K-1 rather than a 1099 and owe tax on their share of its gains each year, even without selling. Expiring contracts must be rolled into later ones, and the price gap between them adds to or takes from returns, so over time it can drift well away from the spot price of what it tracks. Besides the sponsor's fee, it pays brokerage commissions and other costs.
In a retirement portfolio
It offers currency exposure that moves largely independently of US stocks, with a one-year beta of 0.14 as of October 27, 2026, but it is a narrow bet rather than a foundation.
UDN gives a mostly US-dollar portfolio a stake in a weaker dollar. It did not cushion stocks in the 2022 bear market, though. It fell 17.6% from January 13 to September 27, 2022, and took about 30.6 months to recover. 2022 was also its worst calendar year, at -8%. Its deepest drop in the available price history was 23.3%, from January 6, 2021 to September 27, 2022, and it had not regained that peak as of October 27, 2026. Price history starts in June 2020, so the 2008 crisis and the 2020 crash aren't covered. Anyone who may need to draw on these shares in a bad year should expect losses that can last for years. The trailing yield was 3.04% as of October 27, 2026, paid once a year. The 10-K describes a management fee plus brokerage costs, so check the fund's expense ratio before comparing it with funds such as FXY, which charges 0.40%. Past results don't predict the future, and a plan should look at the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Investors who want a direct, unleveraged bet that the US dollar will weaken against the euro, yen, pound and three other major currencies.
- Holders of mostly US assets wanting a small position with little stock-market sensitivity: one-year beta was 0.14 as of October 27, 2026.
- Investors comfortable with Schedule K-1 tax forms and a commodity pool holding futures and Treasury collateral instead of stocks or bonds.
Look elsewhere if
- Investors seeking long-term growth: returns averaged -0.3% a year over the five years through October 27, 2026.
- Anyone wanting protection during stock sell-offs: UDN fell 17.6% in the 2022 bear market and took about 30.6 months to recover.
- Investors who want simple 1099 tax reporting or the investor protections of a 1940 Act fund.
Close alternatives
Matched by legacy category (no holdings report for this fund).
| Fund | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|
| UDN this fund | 0% | $112.6M | -1.9% | +3.3% |
| FXY Invesco Currencyshares Japanese Yen Trust | 0.4% | $546.2M | -3.4% | -2.2% |
Questions investors ask
Is UDN a good hedge against a falling dollar?
It is designed for exactly that. It holds short positions in US Dollar Index futures, so it tends to rise when the dollar weakens against the euro, yen, pound, Canadian dollar, Swedish krona and Swiss franc. In 2025, when the bet paid off, it returned 12.4%. When the dollar strengthens, it loses money: -7.95% in 2022 and -4.53% in 2024. Over the five years through October 27, 2026, it averaged -0.3% a year.
Does UDN pay a dividend?
Yes, once a year. As of October 27, 2026, it had paid $0.54 per share over the past 12 months, a trailing yield of 3.04%. The money comes mainly from interest on the Treasury bills, money market funds and short-term Treasury ETFs that back its futures positions. The payout can change from year to year with short-term interest rates and the fund's trading results.
Does UDN issue a K-1?
Yes. UDN is a commodity pool taxed as a partnership, so investors get a Schedule K-1 instead of a 1099. Each year, holders owe tax on their share of the fund's gains, even if they didn't sell any shares. K-1s can arrive later than 1099s and can make tax filing more complicated. The fund is also not a 1940 Act investment company, so it lacks some of the investor protections that ordinary mutual funds and ETFs have.
Is UDN an inverse or leveraged ETF?
It isn't leveraged, but it does bet against the dollar. Rather than resetting its exposure every day like leveraged or inverse ETFs, it holds short positions in US Dollar Index futures and rolls them each quarter. The basket's base weights are mostly euro (57.6%), followed by the yen (13.6%) and pound (11.9%). Its volatility was moderate: 5.5% over one year and 6.7% over three years, as of October 27, 2026.
What's the difference between UDN and FXY?
They follow different strategies. UDN uses futures to bet against the dollar versus a six-currency basket. FXY, the Invesco CurrencyShares Japanese Yen Trust, tracks only the yen. The yen makes up just 13.6% of UDN's basket by base weight. FXY charges 0.40%. Through October 27, 2026, UDN returned -1.9% over one year and 3.3% a year over three years. FXY returned -3.4% and -2.2% over the same periods.