What is the ETF that tracks the falling U.S. dollar?
An ETF, short for an exchange traded fund, is an investment vehicle that represents a basket of securities that tracks a particular index. They have grown in number and popularity. The short-dollar ETFs have earned a lot of money for smart investors during the dollar’s decline.SignificancePower Shares offers an ETF that tracks the falling dollar. Its symbol is UDN. The average number of shares traded daily is 405,309.FunctionThe UDN aims to track the price and yield performance (before fees and expenses) of the Deutsche Bank Short U.S. Dollar Futures index, an index of short futures contracts. The futures contract seeks to mirror the performance of being short against the following currencies: the U.S. dollar against the euro, Japanese yen, British pound, Canadian dollar, Swedish krona and Swiss franc.ConsiderationsTypically, when the dollar is falling; when oil, gold and other metals are rising; and when interest rates are low, the UDN rises.FeaturesHigher interest rates offered outsi
