Exchange-traded funds (ETFs) are not perfect market-trackers, especially with potential upside-down markets. Invesco DB US Dollar Index Bullish Fund (UUP) tracks the U.S. Dollar Index ($DXY) but pays distributions, affecting charting. DXY is showing signs of weakening, projected to drop towards $94 by Q2 2026 due to global capital shift and U.S. debt concerns.

To capitalize on the dollar’s potential decline, consider Invesco DB US Dollar Index Bearish Fund (UDN) as a mirror image. UDN rallied over 10% in early 2025, offering diversification with low beta and correlation to U.S. stock market. With the dollar’s resistance at $100, a sell-off could become a major theme.

As the dollar faces downward pressure from fiscal deficits and global market pivots, alternative investments are sought in 2026. UDN, with its potential for growth and low correlation to U.S. stocks, presents an opportunity for investors looking to diversify amidst uncertain market conditions.

Read more at Yahoo Finance: How To Capitalize on the Greenback’s Retreat