ETFdb Logo
  • ETF Database
  • Channels
    • Themes
      • Active ETF
      • Alternatives Channel
      • Artificial Intelligence
      • China Insights
      • Climate Insights
      • Core Strategies
      • Crypto
      • Disruptive Technology
      • Energy Infrastructure
      • ETF Building Blocks
      • ETF Education
      • ETF Investing
      • ETF Strategist
      • Faith-Based Investing
      • Financial Literacy
      • Fixed Income
      • Free Cash Flow
      • Innovative ETFs
      • Invest Beyond Cash
      • Leveraged & Inverse
      • Modern Alpha
      • Portfolio Strategies
      • Tax Efficient Income
    • Asset Class
      • Equity
        • U.S. Equity
        • Int'l Developed
        • Emerging Market Equities
      • Alternatives
        • Gold/Silver/Critical Materials
        • Crypytocurrency
        • Currency
        • Volatility
      • Fixed Income
        • Investment Grade Corporates
        • US Treasuries & TIPS
        • High Yield Corporates
        • Int'l Fixed Income
    • ETF Ecosystem
    • ETFs in Canada
    • Market Outlook
    • Crypto ETF Hub
  • Tools
    • ETF Screener
    • ETF Country Exposure Tool
    • ETF Database Categories
    • Indexes
    • Scenario Analysis
    • Watchlists
    • Head-To-Head ETF Comparison Tool
    • Mutual Fund To ETF Converter
    • ETF Stock Exposure Tool
    • ETF Issuer Fund Flows
  • Research
    • ETF Education
    • Equity Investing
    • Dividend ETFs
    • Leveraged ETFs
    • Inverse ETFs
    • Index Education
    • Index Insights
    • Top ETF Sectors
    • Top ETF Issuers
    • Top ETF Industries
  • Webcasts
  • Themes
    • AI ETFs
    • Blockchain ETFs
    • See all Thematic Investing ETF themes
    • ESG Investing
    • Marijuana ETFs
  • Multimedia
    • ETF 360 Video Series
    • ETF of the Week Podcast
    • Gaining Perspective Podcast
    • ETF Prime Podcast
    • Video
  • Company
    • About VettaFi
    • Get VettaFi’ed
  • PRO
    • Pro Content
    • Pro Tools
    • Advanced
    • FAQ
    • Pricing
    • Free Sign Up
    • Login
  1. ETF of the Week: UUP
News
Share

ETF of the Week: UUP

Karrie GordonJun 09, 2022
2022-06-09

VettaFi’s vice chairman Tom Lydon discussed the Invesco DB US Dollar Index Bullish Fund (UUP A) on this week’s “ETF of the Week” podcast with Chuck Jaffe of “Money Life.”

In a challenging environment for equities and bonds, the U.S. dollar is performing strongly as Fed tightening equates to a reduction in money circulating. For advisors and investors considering alternative investments, currencies provide an easily accessible option.

“It’s important as we see volatility in the marketplace around the world, to identify the fact that currencies play a role in client portfolios, they play a role in your own portfolios, and there are opportunities to help diversify if you see fluctuation in currencies,” Lydon said.

Rising interest rates usually give support to the strength of the dollar, and given the instability in the global economy right now, investors are allocating to the currencies that they trust most and feel safest in, with the dollar top of the list.

For advisors and investors who are looking to invest globally in developed countries in Europe, Latin America, Asia, and emerging markets to capture historic valuations, it’s important to be aware of currency risk.

“If those local currencies are not doing well compared to the dollar, in addition to the equity markets in those areas underperforming, they can underperform more if their local currencies are not keeping up with the U.S. dollar because we invest in dollar-denominated securities,” Lydon explained.

Different areas around the world carry different investment risks that can have an impact on the value of the local currency. A good example is today’s markets is within Europe where concerns around commodity price fallout and the subsequent impact on equity markets coupled with the impacts to the energy sector and agriculture due to the Russian war in Ukraine have affected the strength of the European economy and the euro.

Many investors have pooled money to money markets, cash, and short-duration bond funds as they sit out market volatility in the current environment. With the potential for inflation to be longer-lasting, however, Lydon encouraged advisors and investors to consider allocating that sideline money into a fund such as UUP.

“You might be able to do better in a fund like this than you would in cash or fixed income,” Lydon said.

For trend followers, Lydon explained that it is a 200-day moving average play for those that might have money on the sidelines.


Content continues below advertisement

Listen to the Entire ETF of the Week Episode Featuring Tom Lydon:

For more podcast episodes featuring Tom Lydon, visit our podcasts category.

» Popular Pages

  • Tickers
  • Articles

Jun 23

Central Bank Gold Buying Recedes, But Not Likely to Falter

Jun 23

Weekly Economic Snapshot: Spending Slowdown & Industrial Dip

Jun 23

Double-Leverage Bitcoin's Rise With This Crypto Industry ETF

Jun 23

ETF Records Were Made to Be Broken

Jun 23

Get the Skinny on This Alternative Income ETF

Jun 20

Main Management Market Note: June 20, 2025

Jun 20

Treasury Yields Snapshot: June 20, 2025

Jun 20

S&P 500 Snapshot: Index Down for Second Straight Week

Jun 20

AVEM Hits $10 Billion Milestone Amid Rising EM Demand

Jun 20

Gold Miner ETFs Keep Rallying, But Investor Demand Lags

USO

United States Oil Fund LP

QQQ

Invesco QQQ Trust Series I

VOO

Vanguard S&P 500 ETF

UCO

ProShares Ultra Bloomberg...

IVV

iShares Core S&P 500 ETF

GLD

SPDR Gold Shares

SHLD

Global X Defense Tech ETF

SPY

SPDR S&P 500 ETF Trust

SCHD

Schwab US Dividend Equity ETF...

ITA

iShares U.S. Aerospace &...


Content continues below advertisement

Loading Articles...
Our Sites
  • VettaFi
  • Advisor Perspectives
  • ETF Trends
Tools
  • ETF Screener
  • Mutual Fund to ETF Converter
  • Head-To-Head ETF Comparison
  • ETF Country Exposure Tool
  • ETF Stock Exposure Tool
  • ETF Database Pro
More Tools
  • Financial Advisor & RIA Center
Explore ETFs
  • ETF News
  • ETF Category Reports
  • Premium Articles
  • Alphabetical Listing of ETFs
  • Browse ETFs by ETF Database Category
  • Browse ETFs by Index
  • Browse ETFs by Issuer
  • Compare ETFs
Information
  • Contact Us
  • Terms of Use and Privacy Policy
  • © 2025 VettaFi LLC. All rights reserved.

Advertisement

Is Your Portfolio Positioned With Enough Global Exposure?

ETF Education Channel

How to Allocate Commodities in Portfolios

Tom LydonApr 26, 2022
2022-04-26

A long-running debate in asset allocation circles is how much of a portfolio an investor should...

Core Strategies Channel

Why ETFs Experience Limit Up/Down Protections

Karrie GordonMay 13, 2022
2022-05-13

In a digital age where information moves in milliseconds and millions of participants can transact...

}
X