Two new mutual funds that track the rise and fall of the dollar are becoming more popular, according to Dow Jones. ProFund Advisers LLC recently launched the Rising U.S. Dollar ProFund and the Falling U.S. Dollar ProFund. Together, these funds are among the first mutual funds that invest in currencies.
The rising dollar fund, the only one of its kind, tries to match the daily performance of the U.S. Dollar Index, traded at the New York Board of Trade, which is calculated using a trade-weighted average of six foreign currencies: the euro, Japanese yen, British pound, Canadian dollar, Swedish krona and Swiss franc. The falling dollar fund tries to match the inverse of the dollar index.