WisdomTree, an exchange-traded fund sponsor and asset manager, has announced the launch of the WisdomTree Bloomberg US Dollar Bullish ETF (USDU).

Srikant Dash, Head of Bloomberg Indexes.

The fund, which is linked to the Bloomberg Dollar Total Return Index, seeks to provide exposure to the US dollar against a broad basket of developed and emerging market currencies based on global trade flows and liquidity measures.

The Bloomberg index measures the US dollar’s performance against a diversified, relevant basket of ten developed world and emerging market currencies with the most liquidity and the largest US trade flows. It is adjusted annually to provide a dynamic representation of today’s global markets.

Commenting on the launch, Luciano Siracusano, WisdomTree Chief Investment Strategist, said: “The US dollar’s value continues to evolve with new economic relationships and changing market dynamics. We believe both trade flows and market liquidity define the value and role of the US dollar in the global economy. By benchmarking our fund to Bloomberg’s index, USDU provides investors with a tool to participate in an environment where the US dollar is rising relative to other currencies.”

Traditional US dollar benchmarks are based on weighted averages that have remained unchanged for more than 30 years, except for the replacement of legacy currencies with the introduction of the Euro in 1999.2

Srikant Dash, Head of Bloomberg Indexes, said: “Our dollar index provides investors a new, accurate way to assess, trade or invest in the value of the greenback against major global currencies. By including major US trading partners such as China, South Korea and Mexico, and the highly liquid Australian dollar, our index represents today’s underlying markets. We are pleased that WisdomTree’s ETF now offers investors a way to gain this exposure with the launch of USDU.”

The fund has been listed on the NYSE Arca and has an expense ratio of 0.50%.