US Dollar ETFs Shed $157M as Investors Flee Bullish Bets

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Weekly Channel Summary

The Currency ETF channel, comprising 15 funds from 4 issuers, currently holds $2.67 billion in total assets. This week, the channel experienced significant net outflows of $155 million, marking a sharp reversal from recent trends. Despite the weekly withdrawal, flows remain positive year-to-date at $395 million and over the past year at $339 million.

This Week’s Performance Leaders and Laggards

Strategies betting against the Japanese Yen were the week’s top performers, with the Short Yen category gaining 2.24%. On the other end of the spectrum, funds with long exposure to the Yen fell 1.21%, making it one of the worst-performing groups. Year-to-date, the trend of Yen weakness holds, as the Short Yen category is up 7.56% while Long Yen funds are down 2.13%.

Currency Performance Snapshot

Currency WTD 1 Month 3 Month 6 Month YTD 1 Year
Short: Yen 2.24% -3.06% 2.80% 12.32% 7.56% 24.50%
Long: CAD 0.46% 1.36% -1.12% -1.88% -1.05% -0.32%
Long: GBP 0.30% 1.27% 1.51% 0.12% 1.65% 2.14%
Long: AUD 0.21% 1.72% -1.52% 0.82% 7.00% 10.31%
Long: USD 0.12% -1.06% 1.46% 4.18% 3.12% 5.07%
Long: EUR 0.10% 1.12% -0.32% -1.32% -0.42% 0.65%
Short: USD -0.11% 1.39% -0.27% -1.99% -0.33% 0.18%
Long: Emerging -0.64% 1.87% 2.00% 1.61% 4.74% 8.75%
Long: CHF -0.72% -0.50% -3.77% -5.89% -2.93% -1.23%
Long: Yen -1.21% 1.87% -0.82% -4.71% -2.13% -8.29%
Long | Short: Multi -1.30% -4.78% -2.08% -0.82% 7.96% 14.41%

Top & Bottom 5 ETFs by Weekly Performance

Reflecting the sharp decline in the Yen, the ProShares UltraShort Yen (YCS) was the top-performing fund, returning 2.24% for the week. Conversely, its leveraged counterpart, the ProShares Ultra Yen (YCL), was the worst performer with a loss of 2.30%. Among funds with long exposure, the Invesco CurrencyShares Canadian Dollar Trust (FXC) was a notable gainer, rising 0.46%.

Ticker Fund Name WTD Performance
Top Performers
YCS ProShares UltraShort Yen 2.24%
FXC Invesco CurrencyShares Canadian Dollar Trust 0.46%
FXB Invesco CurrencyShares British Pound Sterling Trust 0.30%
FXA Invesco CurrencyShares Australian Dollar Trust 0.21%
UUP Invesco DB US Dollar Index Bullish Fund 0.14%
Bottom Performers
YCL ProShares Ultra Yen -2.30%
FOXY Simplify Currency Strategy ETF -1.30%
FXY Invesco Currencyshares Japanese Yen Trust -1.13%
FXF Invesco CurrencyShares Swiss Franc Trust -0.72%
CEW WisdomTree Emerging Currency Strategy Fund -0.64%

Analyzing the Weekly Flows

Currency ETFs saw net redemptions of $155 million over the past week, driven almost entirely by a single category. Funds with long exposure to the US Dollar experienced outflows of $157 million, overwhelming all other activity. In a contrarian move, the Long Yen category was the only group to attract meaningful new assets, pulling in $20 million despite the currency’s poor weekly performance.

Currency Flows Summary

Currency Fund Count AUM 5 Day 30 Day 90 Day YTD 1 Year
Long: Yen 2 $487M $20M $19M $11M -$25M -$83M
Long | Short: Multi 1 $359M $0M $16M $69M $317M $352M
Long: EUR 3 $379M $0M $4M -$74M -$79M -$179M
Long: Emerging 1 $18M $0M $2M $2M $4M $8M
Long: GBP 1 $65M $0M -$13M -$32M -$12M -$19M
Short: Yen 1 $30M $0M -$3M $0M -$7M -$12M
Short: USD 1 $101M -$2M -$8M -$24M -$37M -$43M
Long: AUD 1 $95M -$3M -$7M -$10M $3M $10M
Long: CHF 1 $391M -$5M -$27M -$82M $9M $20M
Long: CAD 1 $67M -$7M -$4M -$7M -$7M -$24M
Long: USD 2 $681M -$157M -$213M -$35M $229M $310M

Top & Bottom 5 ETFs by 5-Day Flow

The Invesco Currencyshares Japanese Yen Trust (FXY) stood alone as the top asset gatherer, securing $20 million in net new assets. Outflows were concentrated in two large US Dollar funds, with the WisdomTree Bloomberg US Dollar Bullish Fund (USDU) leading redemptions at $95 million. The Invesco DB US Dollar Index Bullish Fund (UUP) followed with the second-largest outflow of $62 million.

Ticker Fund Name 5-Day Flow
Inflows
FXY Invesco Currencyshares Japanese Yen Trust $20M
FOXY Simplify Currency Strategy ETF $0M
FXE Invesco CurrencyShares Euro Trust $0M
FXB Invesco CurrencyShares British Pound Sterling Trust $0M
EUO ProShares UltraShort Euro $0M
Outflows
USDU WisdomTree Bloomberg US Dollar Bullish Fund -$95M
UUP Invesco DB US Dollar Index Bullish Fund -$62M
FXC Invesco CurrencyShares Canadian Dollar Trust -$7M
FXF Invesco CurrencyShares Swiss Franc Trust -$5M
FXA Invesco CurrencyShares Australian Dollar Trust -$3M

Issuer League Table Update

Invesco continues to dominate the currency space, commanding 69.26% of the market share, with WisdomTree a distant second at 13.55%. The broad selling pressure was evident at the issuer level, as no firm recorded net inflows for the week. WisdomTree saw the largest net redemptions of $95 million, while Invesco experienced outflows totaling $60 million.

Top 5 Issuers by AUM

Brand Fund Count AUM AUM Market Share
Invesco 8 $1.85B 69.26%
WisdomTree 2 $362M 13.55%
Simplify 1 $359M 13.45%
ProShares 4 $100M 3.74%

Top & Bottom 3 Issuers by 5-Day Flow

Brand 5-Day Flow
Inflows
ProShares $0M
Simplify $0M
Invesco -$60M
Outflows
WisdomTree -$95M
Invesco -$60M
ProShares $0M

For a deeper dive into these trends, access our FREE, in-depth Currency ETF reports in the right side panel of this page.

Disclosures

This material is for informational purposes only and should not be considered investment advice. All investments, including ETFs, involve risk, including the possible loss of principal. Investors should consider their investment objectives, risks, charges, and expenses carefully before investing.

This analysis was developed by the team at ETF Action. We leverage advanced AI tools to assist in the drafting and refinement of our content, based on our expert prompts, direction, and final review.