The bullish dollar exchange traded fund (ETF) has pulled in so much interest recently that trading was briefly halted today so an application for more shares could be filed with the Securities and Exchange Commission (SEC).
After the fund ran out of available shares, trading in PowerShares DB U.S. Dollar Bullish (NYSEArca: UUP) was halted today at 1:23 p.m. ET until a filing with the SEC could be made.
An application for 100 million additional shares was filed and the fund began trading again at 1:51 p.m. ET. As long as no new creation baskets can be issued, UUP runs the risk of trading at a premium to its net asset value (NAV). Investors who want to monitor the intraday indicative value of the fund can visit the ticker page on Yahoo Finance.
UUP is trading at four or five times normal volume today, and until new shares are granted, the fund could continue to trade at a premium. Investors who aren’t comfortable with the premiums should wait until new shares are issued if they plan to buy the fund. Today, UUP is trading at roughly a 1.7% premium.
UUP has been seeing trading volume with moves valued at hundreds of thousands of dollars. Hours before the Federal Reserve announced plans to keep the federal fund target lending rate at current levels, options traders poured into UUP, reports Tennille Tracy for The Wall Street Journal. (ETFs to play the Fed’s move).