Navigating Currency ETFs: USD Dominates Flows While the Yen Falters

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Weekly Channel Summary

The Currency ETF Channel currently encompasses 15 ETFs managed by 4 distinct issuers, accounting for a total Assets Under Management (AUM) of $2.78 billion. The overall channel experienced significant positive momentum recently, registering a total 5-Day Flow of +$169M. Looking at broader time horizons, the space has attracted +$476M in Year-to-Date (YTD) net inflows and a substantial +$877M over the past 1-Year period.

This Week’s Performance Leaders and Laggards

Currency strategies displayed mixed returns this week, with the Short: Yen category taking the lead by gaining +2.38% WTD, boosting its YTD return to +5.06%. Conversely, the Long: Yen category proved to be the primary laggard, dropping -1.75% WTD, pushing its YTD performance further into the red at -3.24%.

Category Performance Snapshot

Category WTD 1 Month 3 Month 6 Month YTD 1 Year
Short: Yen +2.38% +9.87% +6.60% +21.19% +5.06% +25.15%
Long: USD +1.30% +3.63% +2.53% +4.64% +2.48% +1.24%
Long | Short: Multi +0.66% +2.35% +7.33% +12.57% +11.81% +22.27%
Long: AUD 0.00% -0.72% +5.67% +5.93% +5.24% +12.60%
Long: Emerging -0.27% -2.63% +0.89% +2.73% +0.08% +9.55%
Long: EUR -0.34% -0.84% -0.45% -0.02% -0.55% +3.08%
Long: CAD -0.81% -0.74% +0.35% +0.91% -0.20% +5.19%
Long: GBP -0.86% -2.60% -0.35% -1.30% -1.17% +4.68%
Long: CHF -1.30% -2.54% +0.62% +0.58% +0.19% +11.47%
Short: USD -1.36% -3.34% -1.66% -2.11% -1.77% +4.97%
Long: Yen -1.75% -6.45% -4.17% -12.29% -3.24% -13.75%

Top & Bottom 5 ETFs by Weekly Performance

On an individual fund level, the best performing ETF this week was the EUO (ProShares UltraShort Euro), soaring +3.31%. Conversely, the two worst-performing ETFs were ULE (ProShares Ultra Euro) dropping -3.17% and YCL (ProShares Ultra Yen) declining -2.26%.

Ticker Fund Name WTD Performance
Top Performers
EUO ProShares UltraShort Euro +3.31%
YCS ProShares UltraShort Yen +2.38%
UUP Invesco DB US Dollar Index Bullish Fund +1.44%
USDU WisdomTree Bloomberg US Dollar Bullish Fund +1.15%
FOXY Simplify Currency Strategy ETF +0.66%
Bottom Performers
ULE ProShares Ultra Euro -3.17%
YCL ProShares Ultra Yen -2.26%
UDN Invesco DB US Dollar Index Bearish Fund -1.36%
FXF Invesco CurrencyShares Swiss Franc Trust -1.30%
FXY Invesco Currencyshares Japanese Yen Trust -1.23%

Analyzing the Weekly Flows

The Currency channel recorded net inflows totaling +$169M this week. The Long: USD category dominated the flow activity, capturing an impressive +$200M and elevating its total AUM to $678M. The Long: Yen category also saw minor positive activity with +$2M in net inflows. On the other end of the spectrum, the Long: CHF category experienced the steepest withdrawals, shedding -$17M in net outflows.

Category Flows Summary

Category Fund Count AUM 5 Day 30 Day 90 Day YTD 1 Year
Long: USD 2 $678M +$200M +$252M +$219M +$233M +$93M
Long: Yen 2 $531M +$2M $0M +$23M +$18M -$6M
Long | Short: Multi 1 $104M $0M +$14M +$44M +$44M +$91M
Long: AUD 1 $102M $0M $0M +$17M +$10M +$26M
Long: CAD 1 $86M $0M +$7M +$7M +$11M +$11M
Long: Emerging 1 $15M $0M $0M +$4M +$2M +$8M
Long: GBP 1 $71M $0M $0M -$19M -$6M +$13M
Short: USD 1 $141M $0M -$4M +$9M +$5M +$77M
Short: Yen 1 $32M $0M +$3M -$7M -$5M +$4M
Long: EUR 3 $490M -$16M -$13M +$18M +$34M +$218M
Long: CHF 1 $529M -$17M -$34M +$131M +$131M +$343M

Top & Bottom 5 ETFs by 5-Day Flow

Driving the influx of capital was USDU (WisdomTree Bloomberg US Dollar Bullish Fund), which amassed a remarkable +$126M in new money. On the outflow side, the heaviest losses hit FXF (Invesco CurrencyShares Swiss Franc Trust) with -$17M and FXE (Invesco CurrencyShares Euro Trust) with -$16M in redemptions.

Ticker Fund Name 5-Day Flow
Inflows
USDU WisdomTree Bloomberg US Dollar Bullish Fund +$126M
UUP Invesco DB US Dollar Index Bullish Fund +$74M
YCL ProShares Ultra Yen +$2M
CEW WisdomTree Emerging Currency Strategy Fund $0M
EUO ProShares UltraShort Euro $0M
Outflows
FXF Invesco CurrencyShares Swiss Franc Trust -$17M
FXE Invesco CurrencyShares Euro Trust -$16M
UDN Invesco DB US Dollar Index Bearish Fund $0M
FXY Invesco Currencyshares Japanese Yen Trust $0M
FXC Invesco CurrencyShares Canadian Dollar Trust $0M

Issuer League Table Update

Invesco remains the dominant force in the Currency ETF space, commanding 80.41% of the market share, followed by WisdomTree at 11.45%. Despite its second-place ranking in overall AUM, WisdomTree gathered the most new assets this week, netting +$126M. Conversely, Simplify experienced the lowest net flow among all tracked issuers, registering $0M for the week.

Top 5 Issuers by AUM

Brand Fund Count AUM AUM Market Share
Invesco 8 $2.24B 80.41%
WisdomTree 2 $0.32B 11.45%
ProShares 4 $0.12B 4.38%
Simplify 1 $0.10B 3.75%

Top & Bottom 3 Issuers by 5-Day Flow

Brand 5-Day Flow
Inflows
WisdomTree +$126M
Invesco +$41M
ProShares +$2M
Outflows
Simplify $0M
ProShares +$2M
Invesco +$41M

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.