Yen ETFs Rebound Sharply While Investors Pull Cash From the Category

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Weekly Channel Summary

The Currency ETF channel, comprising 15 ETFs from 4 issuers, holds total assets of $2.88 billion. The channel experienced net outflows of $38 million over the past week, though it maintains a positive inflow of $604 million year-to-date. Over the last twelve months, currency ETFs have attracted a net total of $489 million.

This Week’s Performance Leaders and Laggards

A weaker U.S. dollar propelled foreign currency ETFs higher this week, with Long Yen strategies leading all categories with a 3.05% gain. This marks a significant reversal for the category, which remains down 2.00% year-to-date. Conversely, Long USD funds were the worst performers, falling 1.33% for the week, though they retain a 3.42% gain for the year.

Currency Performance Snapshot

Currency WTD 1 Month 3 Month 6 Month YTD 1 Year
Long: Yen 3.05% 2.24% -1.85% -3.30% -2.00% -6.25%
Short: USD 1.63% 1.46% -1.41% -1.95% -0.66% 1.81%
Long: Emerging 1.26% 1.95% 1.62% 2.23% 4.20% 9.82%
Long: CHF 1.25% -0.01% -3.44% -4.69% -2.29% -0.02%
Long: GBP 1.23% 1.77% -0.41% -0.48% 1.16% 4.27%
Long: EUR 1.11% 0.84% -0.92% -1.47% -0.70% 1.92%
Long: AUD 0.87% 1.81% -1.91% 1.70% 6.25% 10.81%
Long: CAD 0.72% 1.18% -3.04% -2.81% -1.96% -1.01%
Long | Short: Multi 0.52% -3.52% 0.91% 6.49% 10.42% 19.88%
Long: USD -1.33% -0.91% 2.57% 4.34% 3.42% 3.87%
Short: Yen -5.54% -3.55% 5.34% 9.33% 7.29% 19.42%

Top & Bottom 5 ETFs by Weekly Performance

The week’s top performance was driven by leveraged and inverse plays on the Japanese Yen. ProShares Ultra Yen (YCL) surged 5.16%, while its counterpart, ProShares UltraShort Yen (YCS), was the worst performer with a 5.54% loss. The largest fund in the channel, the Invesco DB US Dollar Index Bullish Fund (UUP), declined by 1.43% amid broad dollar weakness.

Ticker Fund Name WTD Performance
Top Performers
YCL ProShares Ultra Yen 5.16%
FXY Invesco Currencyshares Japanese Yen Trust 2.89%
ULE ProShares Ultra Euro 2.65%
UDN Invesco DB US Dollar Index Bearish Fund 1.63%
FXE Invesco CurrencyShares Euro Trust 1.47%
Bottom Performers
YCS ProShares UltraShort Yen -5.54%
EUO ProShares UltraShort Euro -2.65%
UUP Invesco DB US Dollar Index Bullish Fund -1.43%
USDU WisdomTree Bloomberg US Dollar Bullish Fund -1.23%
FOXY Simplify Currency Strategy ETF 0.52%

Analyzing the Weekly Flows

Despite strong performance in foreign currencies, the channel saw net outflows of $38 million for the week. Investors sold into strength, pulling $20 million from Long Yen funds, the week’s best-performing category. Outflows were also notable from Long Swiss Franc (-$16 million) and Long British Pound (-$13 million), while Long USD funds were the only group to see meaningful inflows, attracting $9 million.

Currency Flows Summary

Currency Fund Count AUM 5 Day 30 Day 90 Day YTD 1 Year
Long: USD 2 $890M $9M $18M $118M $439M $545M
Long: Emerging 1 $18M $2M $2M $2M $4M $6M
Long | Short: Multi 1 $361M $1M $17M $240M $317M $352M
Long: EUR 3 $385M $0M -$32M -$107M -$72M -$200M
Long: AUD 1 $97M $0M -$3M -$7M $7M $7M
Long: CAD 1 $70M $0M -$7M -$7M -$3M -$24M
Short: USD 1 $109M $0M -$5M -$26M -$29M -$39M
Short: Yen 1 $32M $0M $0M $0M -$7M -$3M
Long: GBP 1 $65M -$13M -$13M -$19M -$12M -$25M
Long: CHF 1 $398M -$16M -$33M -$83M $14M $9M
Long: Yen 2 $458M -$20M -$11M -$15M -$53M -$137M

Top & Bottom 5 ETFs by 5-Day Flow

Investor flows ran contrary to performance trends, with the Invesco DB US Dollar Index Bullish Fund (UUP) leading inflows by gathering $9 million. The largest redemptions came from funds tracking currencies that performed well during the week. The Invesco Currencyshares Japanese Yen Trust (FXY) shed $20 million, and the Invesco CurrencyShares Swiss Franc Trust (FXF) saw outflows of $16 million.

Ticker Fund Name 5-Day Flow
Inflows
UUP Invesco DB US Dollar Index Bullish Fund $9M
CEW WisdomTree Emerging Currency Strategy Fund $2M
FOXY Simplify Currency Strategy ETF $1M
FXE Invesco CurrencyShares Euro Trust $0M
USDU WisdomTree Bloomberg US Dollar Bullish Fund $0M
Outflows
FXY Invesco Currencyshares Japanese Yen Trust -$20M
FXF Invesco CurrencyShares Swiss Franc Trust -$16M
FXB Invesco CurrencyShares British Pound Sterling Trust -$13M
USDU WisdomTree Bloomberg US Dollar Bullish Fund $0M
UDN Invesco DB US Dollar Index Bearish Fund $0M

Issuer League Table Update

Invesco remains the dominant issuer in the currency space, managing $1.94 billion in assets for a 67.4% market share, followed by WisdomTree with a 16.5% share. However, Invesco also led outflows for the week, experiencing $40 million in redemptions across its currency suite. WisdomTree was the top asset gatherer, albeit with a modest inflow of $2 million.

Top 5 Issuers by AUM

Brand Fund Count AUM AUM Market Share
Invesco 8 $1.94B 67.38%
WisdomTree 2 $476M 16.51%
Simplify 1 $361M 12.54%
ProShares 4 $103M 3.57%

Top & Bottom 3 Issuers by 5-Day Flow

Brand 5-Day Flow
Inflows
WisdomTree $2M
Simplify $1M
ProShares $0M
Outflows
Invesco -$40M
ProShares $0M
Simplify $1M

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.