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Inverse Euro ETF (EUFX) Hits New 52-Week Low

Sanghamitra Saha
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Investors looking to avoid underperformance should steer clear of ProShares Short Euro EUFX. The fund recently hit a new 52-week low. Shares of EUFX are down roughly 13.2% from its 52-week high of $45.85/share.

But is more pain in store for this ETF? Let’s take a quick look at the fund and the near-term outlook to get a better idea of where it might be headed.

EUFX in Focus

The product looks to track the inverse of the daily performance of the U.S. dollar price of the euro. It charges 95 basis points in fees per year and has AUM of $8.0 million (see all inverse currency ETFs here).

Why the Move?

The euro is on a tear lately. The economic improvement in the Euro zone and the ECB President Draghi’s inability to talk down the euro’s strength during his recent speech at Jackson Hole triggered the policy tightening concerns by the ECB. Needless to say, this weighed on the inverse euro ETF.

More Losses Ahead?

With the euro gaining strength in recent trading, we believe it is better to avoid this ETF. The fund has a negative weighted alpha of 9.74. So, the outlook for this fund remains quite bleak.

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PRO-SH EURO (EUFX): ETF Research Reports
 
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