Investors Sell US Dollar ETFs as Yen and Emerging Currencies Rally

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Weekly Channel Summary

The Currency ETF channel, comprising 15 funds from 4 issuers, holds a total of $2.86 billion in assets under management. This week, the segment experienced net outflows of $54 million, trimming some of its recent gains. Despite the weekly redemptions, currency ETFs have attracted a robust $550 million year-to-date and $446 million over the past year.

This Week’s Performance Leaders and Laggards

Long Emerging Market currency strategies led performance for the week, gaining 1.16%. Strategies long the Japanese Yen also posted strong results, rising 1.10% as the US Dollar weakened. Conversely, funds shorting the Yen were the worst performers, falling 1.94%. Year-to-date, Long Australian Dollar funds remain leaders with a 6.78% return.

Currency Performance Snapshot

Currency WTD 1 Month 3 Month 6 Month YTD 1 Year
Long: Emerging 1.16% 2.78% 1.83% 3.08% 5.41% 9.98%
Long: Yen 1.10% 3.02% -0.65% -0.59% -0.94% -7.68%
Long: AUD 0.50% 2.15% -1.73% 1.43% 6.78% 9.84%
Long: CAD 0.48% 1.68% -2.07% -2.05% -1.50% -1.34%
Short: USD 0.44% 1.73% -0.82% -1.03% -0.22% 0.18%
Long: EUR 0.22% 1.08% -0.80% -1.11% -0.52% 0.54%
Long: GBP 0.19% 1.23% 0.02% 0.12% 1.35% 2.61%
Long: CHF 0.07% 0.05% -3.50% -4.32% -2.22% -0.64%
Long: USD -0.44% -1.35% 2.06% 3.32% 2.95% 5.10%
Long | Short: Multi -0.94% -3.89% -0.56% 2.25% 9.38% 16.19%
Short: Yen -1.94% -5.09% 2.63% 3.88% 5.21% 23.22%

Top & Bottom 5 ETFs by Weekly Performance

The top-performing fund was the leveraged ProShares Ultra Yen (YCL), which surged 2.29%. The WisdomTree Emerging Currency Strategy Fund (CEW) also delivered a solid 1.16% gain. At the other end of the spectrum, the ProShares UltraShort Yen (YCS) fell 1.94%, reflecting the currency’s strength.

Ticker Fund Name WTD Performance
Top Performers
YCL ProShares Ultra Yen 2.29%
CEW WisdomTree Emerging Currency Strategy Fund 1.16%
FXY Invesco Currencyshares Japanese Yen Trust 1.01%
ULE ProShares Ultra Euro 0.65%
FXA Invesco CurrencyShares Australian Dollar Trust 0.50%
Bottom Performers
YCS ProShares UltraShort Yen -1.94%
FOXY Simplify Currency Strategy ETF -0.94%
USDU WisdomTree Bloomberg US Dollar Bullish Fund -0.53%
UUP Invesco DB US Dollar Index Bullish Fund -0.35%
EUO ProShares UltraShort Euro -0.27%

Analyzing the Weekly Flows

Currency ETFs saw net redemptions totaling $54 million over the past week. The outflows were heavily concentrated in funds with long exposure to the US Dollar, which shed $52 million. In contrast, strategies focused on the Japanese Yen were the only group to attract new capital, pulling in $8 million. Funds offering exposure to the Euro also saw outflows, losing $7 million.

Currency Flows Summary

Currency Fund Count AUM 5 Day 30 Day 90 Day YTD 1 Year
Long: Yen 2 $464M $8M -$1M -$10M -$45M -$113M
Long: CAD 1 $73M $3M -$3M $0M $0M -$21M
Long | Short: Multi 1 $361M $0M $17M $178M $317M $352M
Long: AUD 1 $98M $0M -$3M -$7M $7M $10M
Long: CHF 1 $399M $0M -$22M -$83M $14M $20M
Long: Emerging 1 $18M $0M $2M $2M $4M $8M
Long: GBP 1 $65M $0M -$13M -$26M -$12M -$19M
Short: Yen 1 $29M $0M -$6M $0M -$7M -$10M
Short: USD 1 $109M -$6M -$6M -$25M -$35M -$43M
Long: EUR 3 $379M -$7M -$18M -$80M -$79M -$195M
Long: USD 2 $869M -$52M -$67M $86M $386M $456M

Top & Bottom 5 ETFs by 5-Day Flow

The Invesco Currencyshares Japanese Yen Trust (FXY) was the sole significant gainer, attracting $9 million in new assets. On the other hand, outflows were dominated by two US Dollar bullish funds. The Invesco DB US Dollar Index Bullish Fund (UUP) experienced the largest redemptions at $34 million, followed by the WisdomTree Bloomberg US Dollar Bullish Fund (USDU) with $19 million in outflows.

Ticker Fund Name 5-Day Flow
Inflows
FXY Invesco Currencyshares Japanese Yen Trust $9M
FXC Invesco CurrencyShares Canadian Dollar Trust $3M
FXF Invesco CurrencyShares Swiss Franc Trust $0M
FOXY Simplify Currency Strategy ETF $0M
FXA Invesco CurrencyShares Australian Dollar Trust $0M
Outflows
UUP Invesco DB US Dollar Index Bullish Fund -$34M
USDU WisdomTree Bloomberg US Dollar Bullish Fund -$19M
UDN Invesco DB US Dollar Index Bearish Fund -$6M
FXE Invesco CurrencyShares Euro Trust -$5M
EUO ProShares UltraShort Euro -$2M

Issuer League Table Update

Invesco remains the dominant issuer in the currency space, managing $1.93 billion for a 67.35% market share, followed by WisdomTree with a 16.55% share. No issuer recorded net inflows for the week. Invesco led the outflows, shedding $33 million from its funds, while WisdomTree also saw notable redemptions of $19 million.

Top 5 Issuers by AUM

Brand Fund Count AUM AUM Market Share
Invesco 8 $1.93B 67.35%
WisdomTree 2 $474M 16.55%
Simplify 1 $361M 12.61%
ProShares 4 $100M 3.49%

Top & Bottom 3 Issuers by 5-Day Flow

Brand 5-Day Flow
Inflows
Simplify $0M
ProShares -$2M
WisdomTree -$19M
Outflows
Invesco -$33M
WisdomTree -$19M
ProShares -$2M

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.