UUP

The Invesco DB US Dollar Index Bullish Fund (UUP) is an exchange-traded fund designed to track the performance of the U.S. dollar relative to a basket of foreign currencies relevant to global trade and financial markets. The fund is managed by Invesco and trades under the ticker UUP on the NYSE Arca.

Classified as a currency ETF using a futures-based strategy, the fund seeks to reflect the performance of the Deutsche Bank Long USD Currency Portfolio Index Excess Return, an index designed to measure the appreciation of the U.S. dollar against a basket of developed-market currencies.

The ETF follows a passive derivatives-based strategy, using currency futures contracts to obtain exposure to the U.S. dollar. The fund does not hold physical currencies directly, instead maintaining long U.S. dollar positions against selected foreign currencies represented in the benchmark index.

Diversification and sector exposure

UUP maintains exposure primarily associated with:

• U.S. dollar.
• Global foreign-exchange markets.
• Currency futures contracts.
• Euro.
• Japanese yen.
• British pound.
• Swiss franc.
• U.S. monetary policy.

The ETF’s performance is particularly sensitive to Federal Reserve decisions, expectations surrounding U.S. inflation and interest rates, and changes in global perceptions of risk and economic growth.

Movements in international currency markets, differences in central-bank monetary policy, and defensive positioning during periods of economic uncertainty may also directly affect the fund’s behavior.

Structure and costs

UUP shares trade on the secondary market on the NYSE Arca during regular trading hours. Share creation and redemption occur through authorized participants, a mechanism intended to help align the ETF’s market price with its net asset value (NAV).

The fund charges a management fee as outlined in its prospectus and does not apply a performance fee. Because the strategy relies on currency futures contracts, the ETF may be affected by futures-roll dynamics and liquidity conditions within the foreign-exchange futures market.

UUP does not primarily seek recurring dividend distributions, since its structure is based on currency exposure and financial derivatives.

History and evolution of the ETF

The Invesco DB US Dollar Index Bullish Fund was launched in 2007 during a period marked by the expansion of currency-related ETFs and growing demand for instruments providing exposure to the U.S. dollar.

Since inception, the fund has reflected periods of U.S. dollar strength and weakness relative to major global currencies, including changes in U.S. monetary policy, financial crises, and shifts in international capital flows.

In recent years, UUP has reflected movements associated with Federal Reserve interest-rate cycles, global inflation trends, geopolitical tensions, and changing expectations surrounding economic growth and international liquidity.

Additional Information

Invesco DB US Dollar Index Bullish Fund (United States) is an exchange-traded fund (ETF), with assets under management totaling $342.01 Millions.

Over the past 12 months, Invesco DB US Dollar Index Bullish Fund recorded a return of 5.86%, with its price trading between $26.47 and $28.41 during the same period.

The ETF is traded under the ticker UUP.