Faltering oil prices predictably help the dollar because commodities are denominated in the U.S. currency, but the reverse is true for so-called commodity currencies like the Aussie and Canadian dollar. Falling oil prices have pressured the loonie, sending the CurrencyShares Canadian Dollar Trust (NYSEArca: FXC) down 4% over the past 90 days. That suits USDU just fine because the ETF has an 11.5% weight to the loonie, which is 240 basis points the U.S. Dollar Index’s to the same currency.
Though still in its rookie year, USDU has found some fans. The ETF has added $22.4 million, or nearly 39% of its 57.7 million in assets under management this year.
WisdomTree Bloomberg U.S. Dollar Bullish Fund
ETF Trends editorial team contributed to this post.