As the dollar begins to rebound, we had a reader ask how exchange traded fund (ETF) investors can benefit. A couple of ways are available to take advantage of a climbing dollar:
- Buy long on the dollar. One way to do this is through the PowerShares U.S. Dollar Index Bullish Fund (UUP). Currently, it’s down 1.8% for the last three months, having launched in February. Conversely, there’s also the PowerShares U.S. Dollar Index Bearish Fund (UDN).
- Buy short on foreign currencies. One way to do this is through currency ETFs such as CurrencyShares Euro Trust (FXE) or the CurrencyShares British Pound Sterling Trust (FXB). Year-to-date, FXE is up 10.1% and FXB is up 8.4%.
Read the disclosure, as Tom Lydon is a board member of Rydex Investments.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Mr. Lydon serves as an independent trustee of certain mutual funds and ETFs that are managed by Guggenheim Investments; however, any opinions or forecasts expressed herein are solely those of Mr. Lydon and not those of Guggenheim Funds, Guggenheim Investments, Guggenheim Specialized Products, LLC or any of their affiliates. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.