ETF Trends
ETF Trends

In spite of lagging performance in the first few months of 2014, it does not appear that UUP (PowerShares DB U.S. Dollar Index Bullish, Expense Ratio 0.50%) holders are looking for the exit, as the fund has actually had small net creation activity year to date.

UUP remains the largest Currency based ETP in the U.S. landscape with approximately $662 million in assets under management (the second largest fund is EUO (ProShares UltraShort Euro, Expense Ratio 0.95%) which has about $403 million in AUM).

Directional traders that are interested in using leverage will likely find UUPT (PowerShares DB 3X Long U.S. Dollar Index Futures ETN, Expense Ratio 0.95%) and UDNT (PowerShares DB 3X Short U.S. Dollar Index Futures
ETN, Expense Ratio 0.95%) as useful tools, but we have not seen a ton of steady activity in either ETN, as well as lower asset levels in most conditions which leads us to believe that the products are still not well-known among funds and strategists that would ordinarily use such currency strategies for hedging and trading.

Speaking of not well-known, WisdomTree launched USDU (WisdomTree Bloomberg U.S. Dollar Bullish Fund, Expense Ratio 0.50%) in December of last year and it remains to be seen if this product carves into the market share eventually of UUP.

Thus far the fund has raised about $44 million in assets, and averages about 10,800 shares traded daily.

For more information on Street One ETF research and ETF trade execution/liquidity services, contact Paul Weisbruch at pweisbruch@streetonefinancial.com.

Street One Financial is an educational/research firm utilizing the Broker Dealer services of Precision Securities, a FINRA registered Broker/Dealer.