Launched on 02/20/2007, the Invesco DB US Dollar Index Bullish ETF (UUP) is a smart beta exchange traded fund offering broad exposure to the Currency ETFs category of the market.
What Are Smart Beta ETFs?
For a long time now, the ETF industry has been flooded with products based on market capitalization weighted indexes, which are designed to represent the broader market or a particular market segment.
Market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns, and are a good option for investors who believe in market efficiency.
If you're the kind of investor who would rather try and beat the market through good stock selection, then smart beta funds are your best choice; this fund class is known for tracking non-cap weighted strategies.
By attempting to pick stocks that have a better chance of risk-return performance, non-cap weighted indexes are based on certain fundamental characteristics, or a combination of such.
This area offers many different investment choices, such as simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies; however, not all of these strategies can deliver superior results.
Fund Sponsor & Index
UUP is managed by Invesco, and this fund has amassed over $223.73 million, which makes it one of the average sized ETFs in the Currency ETFs. UUP seeks to match the performance of the Deutsche Bank Long USD Currency Portfolio Index - Excess Return before fees and expenses.
The Deutsche Bank Long USD Currency Portfolio Index - Excess Return is a rules-based index composed solely of long U.S. Dollar Index futures contracts that trade on the ICE futures exchange.
Cost & Other Expenses
For ETF investors, expense ratios are an important factor when considering a fund's return; in the long-term, cheaper funds actually have the ability to outperform their more expensive cousins if all other things remain the same.
With one of the most expensive products in the space, this ETF has annual operating expenses of 0.74%.
UUP's 12-month trailing dividend yield is 0.00%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
Taking into account individual holdings, Nybot Finex United States Dollar Index Future-12-15-2025 (DXZ5) accounts for about 100.17% of the fund's total assets, followed by Invesco Government & Agency Portfolio (AGPXX) and Cash Collateral (FUTPLGCSH).
UUP's top 10 holdings account for about 200.17% of its total assets under management.
Performance and Risk
The ETF has lost about -8.33% so far this year and is down about -7.98% in the last one year (as of 12/29/2025). In the past 52-week period, it has traded between $26.85 and $29.85
The ETF has a beta of -0.21 and standard deviation of 7.93% for the trailing three-year period, making it a medium risk choice in the space. With about 3 holdings, it has more concentrated exposure than peers .
Alternatives
Invesco DB US Dollar Index Bullish ETF is a reasonable option for investors seeking to outperform the Currency ETFs segment of the market. However, there are other ETFs in the space which investors could consider.
Invesco DB Commodity Index Tracking ETF (DBC) tracks DBIQ Optimum Yield Diversified Commodity Index Excess Return and the Harbor Commodity All-Weather Strategy ETF (HGER) tracks QUANTIX COMMODITY INDEX. Invesco DB Commodity Index Tracking ETF has $1.24 billion in assets, Harbor Commodity All-Weather Strategy ETF has $1.44 billion. DBC has an expense ratio of 0.84% and HGER changes 0.68%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Currency ETFs
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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Invesco DB US Dollar Index Bullish ETF (UUP): ETF Research ReportsThis article originally published on Zacks Investment Research (zacks.com).
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