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The WisdomTree Bloomberg U.S. Dollar Bullish Fund (NYSEARCA:USDU) gives investors exposure to the returns of the U.S. dollar relative to a basket of international currencies.
Hawkish Fed monetary policy should lead to gains of the U.S. dollar, especially if the bear market resumes in global assets, as the U.S. dollar is viewed as a safe haven. However, USDU’s gains may be dampened by the ECB’s hawkish stance, as short Euro is the largest exposure in the USDU.
Fund Overview
The WisdomTree Bloomberg U.S. Dollar Bullish Fund is an ETF that provides exposure to the total returns of the U.S. Dollar relative to a basket of international currencies. The USDU fund charges a 0.50% expense ratio and has almost $400 million in assets.
Strategy
The USDU fund combines a portfolio of currency forward positions with investments in short-term treasury bonds.
The USDU fund’s currency exposures are modelled after the Bloomberg Dollar…
