See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Invesco DB US Dollar Index Bullish ETF (UUP) - free report >>
We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Invesco DB US Dollar Index Bullish ETF (UUP) - free report >>
Image: Bigstock
Dollar ETF (UUP) Hits New 52-Week High
For investors seeking momentum, Invesco DB US Dollar Index Bullish Fund (UUP - Free Report) is probably on radar. The fund just hit a 52-week high and is up 7.4% from its 52-week low price of $24.09/share.
But are more gains in store for this ETF? Let’s take a quick look at the fund and the near-term outlook on it to get a better idea on where it might be headed:
UUP in Focus
Invesco DB US Dollar Index Bullish Fund is the prime beneficiary of the rising dollar as it offers exposure against a basket of six world currencies. This is done by tracking the Deutsche Bank Long USD Currency Portfolio Index - Excess Return plus the interest income from the fund’s holdings of U.S. Treasury securities. In terms of holdings, Invesco DB US Dollar Index Bullish Fund allocates nearly 57.6% in euro and 25.5% collectively in the Japanese yen and British pound. It charges 78 bsp in ananul fees (see: all the Currency ETFs here).
Why the Move?
The U.S. currency has been an area to watch lately given a hawkish Fed, which underscores a strengthening economy. A healthy economy is expected to pull in more capital into the country and lead to the appreciation of the U.S. dollar. Notably, a steep rise in inflation has pushed yields higher and fueled speculation that the Federal Reserve may raise interest rates sooner than expected to combat surging consumer prices.
More Gains Ahead?
Currently, UUP has a Zacks ETF Rank #2 (Buy) with a Medium risk outlook, suggesting continued outperformance in the months ahead. Further, Invesco DB US Dollar Index Bullish Fund might remain strong given its weighted alpha of 6.18 and a 20-day volatility of 6.58%. As a result, there is definitely still some promise for investors who want to ride on this surging ETF a little further.