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Dollar Futures ETFs Post Negative Returns for Past Three Months
Due to a Weak Greenback
Dollar Futures ETFs Post Negative Returns for Past Three Months
  • By Yoon Young-sil
  • November 11, 2019, 08:51
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U.S. dollar futures ETFs have posted negative returns over the past three months on a weak greenback.

Market research firm FnGuide reported on Nov. 8 that dollar futures ETFs with a volume of at least one billion won posted a three-month return of negative 4 percent to negative 8 percent as of Nov. 6.

In addition, the three-month return of leveraged dollar futures ETFs was negative 8 percent during the same period, when ETFs investing in South Korean stocks and foreign stocks gained 13.16 percent and 4.22 percent on average, respectively. Inverse dollar futures ETFs posted a return of 4 percent to 9 percent during the same period.

For the first three quarters of this year, however, dollar futures ETFs and leveraged dollar futures ETFs respectively gained approximately 5 percent and approximately 9 percent with the U.S. dollar appreciating.

In the meantime, the won-dollar exchange rate, which soared amid the U.S.-China trade war and weakening of the yuan, is dropping based on optimistic forecasts about U.S.-China trade negotiations. The exchange rate topped 1,200 won per U.S. dollar in 31 months in August this year. Then, it moved around 1,200 won per U.S. dollar until early October and reached 1,150 won per U.S. dollar early this month.