As investors abandon stocks and precious metals, the US dollar has rallied.
The PowerShares DB US Dollar Bullish Fund (UUP) is up over 3% in the past 3 months compared to a 11% decline in equities over the same time period.
According to the Wall Street Journal, investors pulled some $92 billion out of stock funds in the developed markets during the three months through August. The trend continued in September with $25 billion exiting stock funds in the first three weeks of the month.
Gold ETFs have also been hit hard by the pull back with SPDR Gold Shares (GLD) declining from $183 to $160 in the first three weeks of September.
UUP tracks the DB Long USD Futures Index which is composed solely of long USDX futures contracts. The expense ratio for the $1.6 billion ETF is 0.75%.
For more ways to invest, see the complete list of currency ETFs.
– ETF MarketPro Staff
September 26, 2011