Yen ETFs Rally Sharply, But Investors Cash Out Amidst Strength

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Weekly Channel Summary

The Currency ETF channel holds $2.58 billion in assets across 15 funds from 4 different issuers. For the week, the channel experienced a minor net outflow of $9 million. This recent redemption activity contrasts with the channel’s stronger long-term trends, which include year-to-date net inflows of $302 million and 1-year net inflows of $299 million.

This Week’s Performance Leaders and Laggards

Funds offering long exposure to the Japanese Yen were the standout performers this week, surging by an average of 2.64%. This weekly gain provides a notable boost to the category, which remains slightly negative on a year-to-date basis. Conversely, the Short Yen category was the worst performer, declining by 4.67%, while funds tracking the US Dollar also finished the week in negative territory.

Currency Performance Snapshot

Currency WTD 1 Month 3 Month 6 Month YTD 1 Year
Long: Yen 2.64% 0.96% 2.39% 0.20% -0.16% -5.93%
Long | Short: Multi 2.36% -0.63% -3.37% -1.60% 8.42% 12.44%
Long: Emerging 1.36% 1.67% 3.29% 4.89% 6.20% 10.16%
Long: AUD 0.64% 2.42% 1.40% 2.58% 8.99% 11.97%
Short: USD 0.49% 0.88% 0.72% 0.49% 0.22% 0.69%
Long: CAD 0.45% 1.87% 0.63% -1.23% -0.61% 0.17%
Long: EUR 0.19% 0.67% 0.30% 0.36% -0.13% 0.85%
Long: GBP -0.07% 0.68% 1.25% 2.06% 1.68% 2.81%
Long: CHF -0.10% -0.07% -2.60% -4.02% -2.50% -1.02%
Long: USD -0.46% -0.56% 0.40% 1.83% 2.82% 4.35%
Short: Yen -4.67% -1.53% -3.13% 2.11% 3.81% 18.62%

Top & Bottom 5 ETFs by Weekly Performance

Leveraged products amplified the week’s move in the yen, with the ProShares Ultra Yen (YCL) climbing 4.94% to lead all currency funds. The unleveraged Invesco Currencyshares Japanese Yen Trust (FXY) also posted a strong 2.48% gain. At the bottom of the performance table was the ProShares UltraShort Yen (YCS), which fell 4.67% in line with its inverse strategy.

Ticker Fund Name WTD Performance
Top Performers
YCL ProShares Ultra Yen 4.94%
FXY Invesco Currencyshares Japanese Yen Trust 2.48%
FOXY Simplify Currency Strategy ETF 2.36%
CEW WisdomTree Emerging Currency Strategy Fund 1.36%
FXA Invesco CurrencyShares Australian Dollar Trust 0.64%
Bottom Performers
YCS ProShares UltraShort Yen -4.67%
USDU WisdomTree Bloomberg US Dollar Bullish Fund -0.57%
EUO ProShares UltraShort Euro -0.40%
UUP Invesco DB US Dollar Index Bullish Fund -0.35%
FXF Invesco CurrencyShares Swiss Franc Trust -0.10%

Analyzing the Weekly Flows

Currency ETFs saw a quiet week of flows, posting a collective net outflow of $9 million. The only categories to attract new capital were those tracking the Swiss Franc and Canadian Dollar, which brought in $5 million and $4 million, respectively. In a potential sign of profit-taking, the week’s best-performing category, Long Yen, also saw the largest redemptions, with investors pulling $11 million.

Currency Flows Summary

Currency Fund Count AUM 5 Day 30 Day 90 Day YTD 1 Year
Long: CHF 1 $390M $5M -$5M -$82M $9M $26M
Long: CAD 1 $71M $4M -$4M -$3M -$3M -$21M
Long | Short: Multi 1 $358M $0M $3M $63M $320M $355M
Long: AUD 1 $96M $0M -$3M -$10M $3M $10M
Long: Emerging 1 $18M $0M $0M $2M $4M $8M
Long: GBP 1 $65M $0M $0M -$13M -$12M -$25M
Short: USD 1 $103M $0M -$6M -$15M -$35M -$38M
Short: Yen 1 $27M $0M -$3M -$3M -$10M -$11M
Long: USD 2 $577M -$1M -$289M -$169M $127M $260M
Long: EUR 3 $401M -$5M $21M -$47M -$57M -$165M
Long: Yen 2 $471M -$11M $10M -$4M -$43M -$98M

Top & Bottom 5 ETFs by 5-Day Flow

The Invesco CurrencyShares Swiss Franc Trust (FXF) led all funds with a modest $5 million inflow. On the redemption side, the Invesco Currencyshares Japanese Yen Trust (FXY) saw the largest outflow of the week, shedding $11 million despite its strong performance. The Invesco CurrencyShares Euro Trust (FXE) also experienced outflows, losing $5 million.

Ticker Fund Name 5-Day Flow
Inflows
FXF Invesco CurrencyShares Swiss Franc Trust $5M
FXC Invesco CurrencyShares Canadian Dollar Trust $4M
UUP Invesco DB US Dollar Index Bullish Fund $3M
FOXY Simplify Currency Strategy ETF $0M
UDN Invesco DB US Dollar Index Bearish Fund $0M
Outflows
FXY Invesco Currencyshares Japanese Yen Trust -$11M
FXE Invesco CurrencyShares Euro Trust -$5M
USDU WisdomTree Bloomberg US Dollar Bullish Fund -$4M
FOXY Simplify Currency Strategy ETF $0M
UDN Invesco DB US Dollar Index Bearish Fund $0M

Issuer League Table Update

Invesco continues to dominate the currency ETF space, managing nearly 71% of the channel’s assets, with Simplify holding a distant second place. Invesco also led the week’s outflows, seeing a net redemption of $5 million from its suite of currency products. WisdomTree followed with $4 million in net outflows, while the channel’s other issuers recorded no net change in assets for the week.

Top 5 Issuers by AUM

Brand Fund Count AUM AUM Market Share
Invesco 8 $1.83B 70.98%
Simplify 1 $358M 13.89%
WisdomTree 2 $293M 11.39%
ProShares 4 $96M 3.74%

Top & Bottom 3 Issuers by 5-Day Flow

Brand 5-Day Flow
Inflows
ProShares $0M
Simplify $0M
WisdomTree -$4M
Outflows
Invesco -$5M
WisdomTree -$4M
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.