Dollar Declines Mean Go-Go Days for Commodities ETFs

“The most important takeaway is that because all of these currencies – both major and emerging – are in rising trends, it is the U.S. dollar that is weak. Only the yen now exhibits true strength on its own. Domestic interest-rate policy will be of keen interest to everyone as it directly influences the flow of capital and hence the demand for dollars,” reports Michael Kahn for Barron’s.

Related: U.S. Dollar ETF Heading Toward Strong Period

Another name in the diversified commodities ETF group to consider is the iShares S&P GSCI Commodity-Indexed Trust (NYSEArca: GSG).

The PowerShares DB Agriculture Fund (NYSEArca: DBA) has recently perked up after lagging other commodities ETFs to start the year. DBA currently features exposure to eights commodities, including cattle, coffee, corn, soybeans and wheat.

The PowerShares DB US Dollar Index Bearish Fund (NYSEArca: UDN), which takes the inverse or short performance of the U.S. dollar against the same basket of six major currencies as UUP, is another obvious beneficiary of the dollar’s swoon.

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PowerShares DB Commodity Index Tracking Fund