Is Invesco DB US Dollar Index Bullish ETF (UUP) a Strong ETF Right Now?

The Invesco DB US Dollar Index Bullish ETF (UUP) was launched on 02/20/2007, and is a smart beta exchange traded fund designed to offer broad exposure to the Currency ETFs category of the market.What Are Smart Beta ETFs?Market cap weighted indexes were created to reflect the market, or a specific segment of the market, and the ETF industry has traditionally been dominated by products based on this strategy.Market cap weighted indexes work great for investors who believe in market efficiency. They provide a low-cost, convenient and transparent way of replicating market returns.On the other hand, some investors who believe that it is possible to beat the market by superior stock selection opt to invest in another class of funds that track non-cap weighted strategies--popularly known as smart beta.This kind of index follows this same mindset, as it attempts to pick stocks that have better chances of risk-return performance; non-cap weighted strategies base selection on certain fundamental characteristics, or a mix of such characteristics.Even though this space provides many choices to investors--think one of the simplest methodologies like equal-weighting and more complicated ones like fundamental and volatility/momentum based weighting--not all have been able to deliver first-rate results.Fund Sponsor & IndexThe fund is managed by Invesco, and has been able to amass over $427.99 million, which makes it one of the larger ETFs in the Currency ETFs. Before fees and expenses, UUP seeks to match the performance of the Deutsche Bank Long USD Currency Portfolio Index - Excess Return.The Deutsche Bank Long USD Currency Portfolio Index - Excess Return is a rules-based index composed solely of long U.S. Dollar Index futures contracts that trade on the ICE futures exchange.Cost & Other ExpensesExpense ratios are an important factor in the return of an ETF and in the long-term, cheaper funds can significantly outperform their more expensive cousins, other things remaining the same.Operating expenses on an annual basis are 0.78% for this ETF, which makes it one of the more expensive products in the space.UUP's 12-month trailing dividend yield is 4.48%.Sector Exposure and Top HoldingsETFs offer diversified exposure and thus minimize single stock risk, but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.When you look at individual holdings, Nybot Finex United States Dollar Index Future-12-16-2024 (DXZ4) accounts for about 99.90% of the fund's total assets, followed by Invesco Government & Agency Portfolio-01-01-2025 (AGPXX) and United States Treasury Bill-05-29-2025 (912797NN3).The top 10 holdings account for about 200.02% of total assets under management.Performance and RiskYear-to-date, the Invesco DB US Dollar Index Bullish ETF has added about 0% so far, and is up about 13.46% over the last 12 months (as of 01/01/2025). UUP has traded between $27.32 and $30.65 in this past 52-week period.The fund has a beta of -0.21 and standard deviation of 8.28% for the trailing three-year period, which makes UUP a medium risk choice in this particular space. With about 6 holdings, it has more concentrated exposure than peers.AlternativesInvesco DB US Dollar Index Bullish ETF is a reasonable option for investors seeking to outperform the Currency ETFs segment of the market. However, there are other ETFs in the space which investors could consider.First Trust Global Tactical Commodity Strategy ETF (FTGC) tracks N/A and the Invesco Optimum Yield Diversified Commodity Stratgy No K-1 ETF (PDBC) tracks N/A. First Trust Global Tactical Commodity Strategy ETF has $2.21 billion in assets, Invesco Optimum Yield Diversified Commodity Stratgy No K-1 ETF has $4.07 billion. FTGC has an expense ratio of 1.02% and PDBC charges 0.59%.Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Currency ETFs.Bottom LineTo learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.Research Chief Names "Single Best Pick to Double"From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Invesco DB US Dollar Index Bullish ETF (UUP): ETF Research Reports Invesco Optimum Yield Diversified Commodity Stratgy No K-1 ETF (PDBC): ETF Research ReportsTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks