|Bid||0.00 x 1800|
|Ask||86.52 x 800|
|Day's range||86.61 - 86.79|
|52-week range||83.54 - 89.13|
|PE ratio (TTM)||N/A|
|Beta (3Y monthly)||-1.18|
|Expense ratio (net)||0.40%|
The U.S.-China trade tensions flared up all over again with Trump planning an increase in tariffs. One can counter the threat with these ETFs.
We have highlighted four safe haven ETFs that investors should add to their portfolio, especially if global growth fears continue to escalate.
The ongoing week is dominated by many political events of global importance amid a series of central bank meetings. Investors can rely on these ETFs to safeguard their interests from any upheavals.
As President Trump may impose a $200 additional tariff on Chinese goods, markets may take a hit and these safe and defensive ETFs may go higher.
BoJ may tweak its yield curve control policy and stock-buying techniques to steepen the yield curve. If this happens, these ETFs can gain.
The US Dollar Index (UUP) posted four consecutive daily declines in the previous week as trade tensions escalated between the US and its trading partners. The interesting thing, however, was that the decline in the US dollar was because of the declining bond yields rather than appreciation of other currencies. The increased positive correlation between the US dollar and the US bond yields was the key driver in the US dollar rally in recent weeks.
The US Dollar Index (UUP) managed a sharp recovery last week. The appreciation seemed to be due to tariff announcements instead of the Fed’s hawkish tone after the May FOMC meeting. The only interpretation of the rise in the US dollar would be that investors were seeing trade tensions as a temporary setback to global trade, which could result in a better deal for the US. The US Dollar Index closed for the week ending June 15 at 94.78 and appreciated 1.3%.
Last week, the Japanese yen (JYN) managed its first weekly gain against the US dollar in nine weeks as global risk aversion increased in response to political and geopolitical uncertainties. The yen (FXY) closed the week at 109.39, rising 1.2% against the US dollar (UUP). The news about US President Donald Trump canceling the US–North Korea summit and political uncertainties in Europe increased the demand for safe-haven assets, including the yen.
The US Dollar Index (UUP) continued to appreciate but did so slowly in the week that ended on May 25. Rising political uncertainty in Europe, seesawing trade negotiations between the United States and China, and the diplomatic tussle between the United States and North Korea had an impact on currency markets in the week.
Last week, the Japanese yen (JYN) depreciated against the US dollar for the eighth consecutive week as the dollar continued its upward surge. It was the best run for the dollar against the yen since October 2014. The primary reason for the yen’s weakness is the widening spread between the US and Japanese treasuries, which is being driven by strong US economic performance compared to Japan.
Last week, the US dollar (UUP) index bounced back from a minor pullback in the week ended May 11. Both are positive for the US dollar. According to the latest Commitment of Traders report released on May 18 by the Chicago Futures Trading Commission, large speculators and traders have trimmed their short positions on the US dollar index.