Tag Archives: UUP

Wisdom Tree Gets Wise With New [Long] US Dollar ETF $USDU

indexuniverseCourtesy of Dennis Hudacheck, Index Universe

WisdomTree’s new long-dollar currency ETF is truly one for the ages, literally. I’ve long felt that we’ve needed an alternative to the decades-old US Dollar Index, which was created back in 1973.

So how does the WisdomTree Bloomberg US Dollar Bullish Fund (USDU) differ from its lone competitor, the $682 million PowerShares BD US Dollar Bullish Fund (UUP | B-39), which also happens to be the largest currency ETF?

For starters, there are major differences in the composition of the two funds. There are also differences in the structure of the ETFs.

More on that later, but first let’s start with the currency basket.

WisdomTree’s USDU closely follows the newly created Bloomberg Dollar Spot Index (BBDXY), which includes a trade- and liquidity-selected and -weighted basket of currencies that is rebalanced annually in December.

USDU currently shorts a basket of 10 currencies from major U.S. trading partners from developed as well as emerging markets, including the Brazilian real, Mexican peso, South Korean won and Chinese renminbi.

For the full article from IU, please click here.

Fixed Income ETF Fans Tune In Here

It’s a big bowl of alphabet soup when it comes to quenching your appetite for fixed income ETFs. On today’s menu you’ll find that a small smorgasborg of just these alone will get you through the first of several courses: EUO, UUP, ELD, XLU, IDU.

Ron Quigley

There’s not enough room right here to go into further discussing which of the above fixed-income-flavored ETF(s) will work best, it all depends on which US or geopolitical scenarios you’re trying to feed into. That said, what Ron Quigley says –he’s Mischler Financial Group MD & Head of Fixed Income Syndicate– pretty much sums up what every primary market players’ perspective is this week: “Its good to be selling bonds!!”

Multi-Currency, Sovereign..Utilities..You name it, and the new issuance market says “they’re buying it!”

Reprinted without permission, here’s a 2 paragraph excerpt from tonight’s missive from Quigley to his institutional fixed income patrons:

“..With Consumer Confidence reaching a four-year high coupled with the Greek PSI close to achieving a 85% to 90% participation rate, issuers rode market momentum into what was another prolific day for primary markets.  In total, 11 issuers tapped the dollar markets pricing 16 tranches totaling $8.17 billion.  Thus far the weekly total is $48.55 billion, already placing it as the 3rdbusiest week in history!  With two days left to go, the record of $52.5Bil record may fall.  Among today’s diversified group of issuers were two regulated utilities for Southern California Edison and Consolidated Edison….”

You’ll want to contact Ron directly to see his complete market updates..And, you’ll want to dig into the latest market data behind the above-noted tickers to get the fix you’re looking for.