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

A smart beta exchange traded fund, the Invesco DB US Dollar Index Bullish ETF (UUP) debuted on 02/20/2007, and offers broad exposure to the Currency ETFs category of the market.What Are Smart Beta ETFs?The ETF industry has long been dominated by products based on market cap weighted indexes, a strategy created to reflect the market or a particular market segment.A good option for investors who believe in market efficiency, market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns.If you're the kind of investor who would rather try and beat the market through good stock selection, then smart beta funds are your best choice; this fund class is known for tracking non-cap weighted strategies.Based on specific fundamental characteristics, or a combination of such, these indexes attempt to pick stocks that have a better chance of risk-return performance.Methodologies like equal-weighting, one of the simplest options out there, fundamental weighting, and volatility/momentum based weighting are all choices offered to investors in this space, but not all of them can deliver superior returns.Fund Sponsor & IndexBecause the fund has amassed over $211.74 million, this makes it one of the average sized ETFs in the Currency ETFs. UUP is managed by Invesco. This particular fund seeks to match the performance of the Deutsche Bank Long USD Currency Portfolio Index - Excess Return before fees and expenses.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 UUP, making it the most expensive product in the space.UUP's 12-month trailing dividend yield is 4.73%.Sector Exposure and Top HoldingsWhile ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, most ETFs are very transparent products that disclose their holdings on a daily basis.When you look at individual holdings, Nybot Finex United States Dollar Index Future-09-15-2025 (DXU5) accounts for about 98.31% of the fund's total assets, followed by Invesco Government & Agency Portfolio (AGPXX) and Cash Collateral (FUTPLGCSH).Its top 10 holdings account for approximately 198.58% of UUP's total assets under management.Performance and RiskThe ETF has lost about -5.3% so far this year and is down about -0.35% in the last one year (as of 10/29/2025). In the past 52-week period, it has traded between $26.85 and $30.65UUP has a beta of -0.21 and standard deviation of 8.06% for the trailing three-year period, which makes the fund a medium risk choice in the space. With about 3 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.Harbor Commodity All-Weather Strategy ETF (HGER) tracks QUANTIX COMMODITY INDEX and the Invesco DB Commodity Index Tracking ETF (DBC) tracks DBIQ Optimum Yield Diversified Commodity Index Excess Return. Harbor Commodity All-Weather Strategy ETF has $1.16 billion in assets, Invesco DB Commodity Index Tracking ETF has $1.26 billion. HGER has an expense ratio of 0.68% and DBC changes 0.87%.Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Currency ETFsBottom 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.Boost Your Portfolio with Our Top ETF InsightsZacks' exclusive Fund Newsletter delivers actionable information, top news and analysis, as well as top-performing ETFs, straight to your inbox every week.Don’t miss out on this valuable resource. It’s free!Get it now >>Want 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 ReportsThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks