WisdomTree’s New Long Dollar ETF Shines

November 18, 2014

The firm's long-dollar ETF ‘USDU’ is getting the attention it deserves.

Long-dollar ETFs are all the rage in the currency space this year. The three largest currency ETFs by assets are all long-dollar funds.

But one in particular jumped out at me a few weeks ago based on volume and flows.

That’s the WisdomTree Bloomberg US Dollar Bullish Fund (USDU | 67), which shorts a basket of 10 developed and emerging markets currencies against the dollar. It’s surging both in terms of assets and performance.

Asset Flows

On Oct. 28, the day before the Federal Reserve announced the end of asset purchases under its quantitative easing (QE) program, USDU posted a volume of 3,198,000 shares, or $82.8 million. To put things into perspective, USDU’s median daily volume is just 9,300 shares, or $243,000.

USDU Volume

Source: Bloomberg

The volume on that single day represented 34,387 percent of its median daily volume! Of course, its average volume is now $2.42 million, which is being heavily skewed by that single day.

USDU Tradability

Source: ETF.com

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