ETF Trends
ETF Trends

The bullish dollar exchange traded fund (ETF) has been on a tear in recent months and is one of the few standouts in a sea of red.

The PowerShares DB U.S. Dollar Index Bullish (UUP) is up 14.7% for the last three months, and is up 8.1% year-to-date.

The good times might continue, as the dollar is now at an 18-month high on strong demand from financial institutions seeking a safe haven, reports Lucia Mutikani for Reuters.

Bullish U.S. Dollar ETF

Analysts also say the dollar is fueled by signs of momenutum building for a second economic stimulus package. There’s also speculation that banks will need more dollars to settle credit derivatives tied to the Lehman Brothers bankruptcy.

The Japanese yen also continues to benefit from investors who are liquidating their highly leveraged positions. The currency is closely correlated with risk-aversion in investors, making it the ultimate safe-haven currency, report William L. Watts and Nick Godt for MarketWatch.

CurrencyShares Japanese Yen (FXY) is up 9.4% year-to-date.

Japanese Yen ETF

Read the disclosure, as Tom Lydon is a board member of Rydex Funds.

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.