The Invesco DB US Dollar Index Bullish ETF (UUP) made its debut on 02/20/2007, and is a smart beta exchange traded fund that provides broad exposure to the Currency ETFs category of the market.
What Are Smart Beta ETFs?
Market cap weighted indexes were created to reflect the market, or a specific segment of the market, and the ETF industry has traditionally been dominated by products based on this strategy.
Investors who believe in market efficiency should consider market cap indexes, as they replicate market returns in a low-cost, convenient, and transparent way.
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.
These indexes attempt to select stocks that have better chances of risk-return performance, based on certain fundamental characteristics or a combination of such characteristics.
Methodologies like equal-weighting, one of the simplest options out there, fundamental weighting, and volatility/momentum based weighting are all choices offered to investors in this space, but not all of them can deliver superior returns.
Fund Sponsor & Index
Because the fund has amassed over $285.83 million, this makes it one of the average sized ETFs in the Currency ETFs. UUP is managed by Invesco. This particular fund, before fees and expenses, 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
Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive cousins if all other fundamentals are the same.
Operating expenses on an annual basis are 0.78% for UUP, making it the most expensive product in the space.
The fund has a 12-month trailing dividend yield of 4.75%.
Sector Exposure and Top Holdings
ETFs offer diversified exposure and thus minimize single stock risk, but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.
Looking at individual holdings, Nybot Finex United States Dollar Index Future-06-16-2025 (DXM5) accounts for about 88.55% of total assets, followed by Invesco Government & Agency Portfolio-01-01-2025 (AGPXX) and United States Treasury Bill-05-29-2025 (912797NN3).
The top 10 holdings account for about 185.18% of total assets under management.
Performance and Risk
The ETF has lost about -5.71% so far this year and is up roughly 0.89% in the last one year (as of 05/09/2025). In the past 52-week period, it has traded between $27.04 and $30.65.
The fund has a beta of -0.23 and standard deviation of 8.52% for the trailing three-year period, which makes UUP a medium risk choice in this particular 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.
First Trust Global Tactical Commodity Strategy ETF (FTGC) tracks N/A and the Invesco Optimum Yield Diversified Commodity Stratgy No K-1 ETF (PDBC) tracks N/A. First Trust Global Tactical Commodity Strategy ETF has $2.39 billion in assets, Invesco Optimum Yield Diversified Commodity Stratgy No K-1 ETF has $4.42 billion. FTGC has an expense ratio of 1.02% and PDBC charges 0.59%.
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 Reports Invesco Optimum Yield Diversified Commodity Stratgy No K-1 ETF (PDBC): ETF Research ReportsThis article originally published on Zacks Investment Research (zacks.com).
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