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?
The ETF industry has traditionally been dominated by products based on market capitalization weighted indexes that are designed to represent the market or a particular segment of the market.
Market cap weighted indexes work great for investors who believe in market efficiency. They provide a low-cost, convenient and transparent way of replicating market returns.
There are some investors, though, who think it's possible to beat the market with great stock selection; this group likely invests in another class of funds known as smart beta, which track non-cap weighted strategies.
This kind of index follows this same mindset, as it attempts to pick stocks that have better chances of risk-return performance; non-cap weighted strategies base selection on certain fundamental characteristics, or a mix of such characteristics.
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
The fund is managed by Invesco. UUP has been able to amass assets over $264.41 million, making it one of the average sized ETFs in the Currency ETFs. Before fees and expenses, UUP seeks to match the performance of the Deutsche Bank Long USD Currency Portfolio Index - Excess Return.
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
Expense ratios are an important factor in the return of an ETF and in the long-term, cheaper funds can significantly outperform their more expensive cousins, other things remaining the same.
With one of the most expensive products in the space, this ETF has annual operating expenses of 0.70%.
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.
When you look at individual holdings, Nybot Finex United States Dollar Index Future03-16-2026 (DXH6) accounts for about 98.36% of the fund's total assets, followed by Invesco Government & Agency Portfolio (AGPXX) and Cash Collateral (FUTPLGCSH).
Its top 10 holdings account for approximately 198.36% of UUP's total assets under management.
Performance and Risk
Year-to-date, the Invesco DB US Dollar Index Bullish ETF has added roughly 1.41% so far, and is down about -4.99% over the last 12 months (as of 03/05/2026). UUP has traded between $26.47 $28.65 in this past 52-week period.
UUP has a beta of -0.20 and standard deviation of 7.84% for the trailing three-year period, which makes the fund 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 $1.49 billion in assets, Harbor Commodity All-Weather Strategy ETF has $2.13 billion. DBC has an expense ratio of 0.82% 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.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Invesco DB US Dollar Index Bullish ETF (UUP): ETF Research ReportsThis article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
