Another angle for U.S. dollar exposure is through small-cap company investing. The strength in the currency is a “tailwind for companies with higher domestic revenue,” Couden said. The stronger dollar is a catalyst for U.S. small-cap company growth. The iShares Russell 2000 Index (NYSEArca: IWM) or the iShares Core S&P Small-Cap ETF (NYSEArca: IJR) are both small-cap plays that also include some mid-cap exposure. [A Look at Small- and Mid-Cap ETFs]
The WisdomTree Japan Hedged Equity Fund (NYSEArca: DXJ) is an easy, one-shot way to invest in Japanese equities as the yen continues to weaken and the U.S. dollar strengthens. The weaker yen has created more competition among Japanese and U.S. exporters. The ETF hedges the yen currency exposure, so that gains are not measured in yen, they are measured in U.S. dollars. [Japan ETFs Rally on Further Monetary Easing Talk]
PowerShares DB US Dollar Index Bullish Fund
Tisha Guerrero contributed to this article.