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ETF Chart of the Day: U.S. Dollar


The U.S. Dollar is vaulting higher this morning on a gap up (+0.44%), and trading at its highest levels since August of last year.

In UUP (PowerShares DB U.S. Dollar Index Bullish, Expense Ratio 0.50%), which is the largest ETP dedicated to exposure to the Dollar, trading volume has been extraordinarily light in at least the past ten trading sessions (ADV is 1.03
million shares).

Year to date, the fund has seen a modest $31 million enter the gates via creation activity. This is despite the continued surge in price of the currency, while the Euro is within shouting distance of its multi-month low of $125.92. [ETFs for a Rising U.S. Dollar]

Three other U.S. Dollar products exist in the marketplace all issued by PowerShares, giving the fund company a monopoly here in an important and useful segment of the currency markets. UUP is indeed the largest fund in terms of current assets under management, with $726 million, followed by UDN (PowerShares DB U.S. Dollar Bearish, Expense Ratio 0.50%) which has only $83 million invested presently.

For aggressive traders and or speculators, three times levered funds are also available here, in UUPT (PowerShares DB 3X Long U.S. Dollar Index Futures ETN, Expense Ratio 0.95%) and UDNT (PowerShares DB 3X Short U.S. Dollar Index Futures ETN, Expense Ratio 0.95%), noting that these two funds are ETNs while UUP and UDN are ETFs.

Both UUPT and UDNT remain relatively unrecognized among managers, with $4.4 million and $1.5 million in assets under management respectively, but we suspect with some additional seasoning, these funds will attract more popularity (both funds debuted in May of 2011), especially if the U.S. Dollar continues what has been a unidirectional trend since the beginning of February.

PowerShares DB U.S. Dollar Index Bullish


For more information on Street One ETF research and ETF trade execution/liquidity services, contact Paul Weisbruch at pweisbruch@streetonefinancial.com.