Recently the U.S. Dollar ETF had what is being referred to as having its moment in the sun, on May 6, 2010. Because of the financial worries in Europe because of the Greece financial tragedy, the Euro took a beating. The dollar was trading at $1.28 at the close of the day against the Euro. This is a dramatic change since the first of the year when the rate was at $1.43. This is great for the southern Euro countries but will hurt American exports to Europe by making them cost more.
At the present time there are only two ETF’s that are solely invested in the US Dollar on the New York Stock Exchange. There is the PowerShares DB US Dollar Bullish ETF (UUP) and the PowerShares DB US Dollar Bearish ETF (UDN).
The UUP is up 6.76% this year so far as reported on May 10, 2010.But like all securities that hold currency this is a roller coaster ride made to make profits in the short term. The overall performance of this ETF last year as -6.52% but in 2008 it had a return of 4.90%. The volatility measures of this fund are a Beta at -0.15, the R squared at 53 and a standard deviation of 9.90. With an average daily trading volume of 3.7 million and an expense ratio of 0.75% this ETF is on a roller coaster that is at the mercy of the world economic recession. Investment in it should only be short term at the most. The price at closing on May 10 2010 was $24.64.
The UDN is the inverse of the UUP. It has an YTD performance as of May 10, 2010 of -7.48, but last year brought in 5.19%. The 2008 return was -4.53. The volatility measures of this fund are a Beta at 0.14, the R squared at 52 and the standard deviation of 9.86. The expense ratio is the same at 0.75% but the average trading volume is considerably lower at 348k. The price as of May 10, 2010 was at $25.48.
For the purposes of ETF investing in a U.S. Dollar ETF, these are your only choices at the moment.
For additional resources about ETF on this website, please view Market Vectors Gold Miners ETF (GDX).
If you would like other investing news from Vanguards then please try Janus Flexible Bond Fund Review on our sister site topperformingmutualfunds.net or Fidelity Spartan Funds on mutualfundexplorer.com for other investing news.
We strive to bring you the latest and most accurate data possible from the home sites of the investment institutions we name. Always remember the bigger the risk, the larger the reward or loss. Invest with caution.
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