Invesco DB US Dollar Index Bearish Fund

UDN

Market cap $137M

Invesco DB US Dollar Index Bearish Fund is an ETF providing for a return profile opposite of the Dollar Index. While the U.S. is expected to continue cutting rates, key basket currencies like the Euro and Japanese Yen are seeing a hawkish shift. Growing concerns over U.S. fiscal discipline, with the debt-to-GDP ratio reaching post-war highs (~122%), are beginning to erode the dollar's "safe haven" status.

As the dollar weakens and rate-cut bets rise, these ETFs offer investors a way to hedge, diversify and capitalize on opportunities.

As the U.S. dollar weakens amid Fed rate cuts and investor caution, ETFs like UDN, CEW and gold-backed funds offer timely hedging opportunities.

The U.S. Dollar Index is in a bearish trend for 2025, trading near multiyear lows after a decline in U.S. interest rates. Falling rates, rising U.S. debt, and inflation above target support a bearish outlook, making the Invesco DB US Dollar Index Bearish Fund ETF, or UDN, attractive. Invesco DB US Dollar Index Bullish Fund ETF is suitable for those expecting a dollar rebound, but the path of least resistance remains lower, favoring UDN for potential new lows.

The U.S. Dollar Index remains in a clear bearish trend for 2025, with lower lows and resistance levels capping any rallies. Multiple factors weigh on the dollar: high U.S. debt, political division, tariffs, and global moves away from the dollar as a reserve currency. Despite some potential catalysts for a rebound, the risk-reward profile currently favors a short position in the dollar index.

Something different is happening to the U.S. dollar, which recently completed its worst first half of any calendar year since at least the 1970s: The dollar is strengthening this week, despite President Donald Trump's ongoing tariff talk.

The U.S. dollar just tallied its worst start to a calendar year since the era of free-floating exchange rates began. The second half of 2025 likely won't be much better.

The dollar faces its worst first-half since the 1970s as looming Fed cuts and political uncertainty weigh heavily.

The U.S. dollar index has declined over 11% in 2025, driven by de-dollarization, U.S. debt concerns, and global shifts away from the dollar. Technical and fundamental factors both point to continued downside, with next major support for the dollar index below the 90 level. The Invesco DB U.S. Dollar Index Bearish ETF (UDN) effectively tracks and benefits from the dollar's decline, rallying 13.6% year-to-date.

As the greenback weakens on trade tensions and rate cut bets, investors turn to ETFs like CEW and UDN for currency exposure.