Most investors stare at the news in horror as the dollar drops. Smart investors see an opportunity. A falling dollar doesn’t mean your portfolio has to fall with it. In fact, specific Exchange Traded Funds (ETFs) are designed to profit directly from a weak greenback.

Don’t Just Watch—Bet Against It

The dollar is down 11% this year due to debt concerns and aggressive Fed rate cuts. When the dollar gets cheaper, other currencies get stronger. You can capitalize on this seesaw effect.

Here are 3 ETFs to consider for your “Dollar Crash Emergency Kit”:

1. Invesco DB US Dollar Index Bearish Fund (UDN)

This is the most direct play.
* What it does: It goes UP when the dollar goes DOWN. It tracks a basket of currencies (Euro, Yen, Pound) against the dollar.
* Performance: Up 12.5% year-to-date in 2025.
* Strategy: Use this as a short-term hedge. If you think the dollar will slide for another month, parking cash here preserves its global buying power.

2. Invesco CurrencyShares Euro Trust (FXE)

The Euro is the main rival to the dollar.
* What it does: It tracks the value of the Euro. As investors flee the dollar, they often park cash in Europe.
* Why now: The European Central Bank is holding rates steady while the US cuts, making the Euro more attractive.

3. WisdomTree Emerging Markets Local Debt Fund (ELD)

* What it does: Owns bonds issued by countries like Brazil and Mexico in their *own* currencies.
* The Kicker: You get paid a high interest rate (currently ~6%) PLUS you gain capital appreciation if their currencies rise against the dollar.

Your Strategy

You don’t need to bet the farm. Allocating 5-10% of your portfolio to currency-hedged ETFs can act as insurance.

Warning: Currency markets are highly volatile and affected by geopolitics. These are not “set it and forget it” investments like the S&P 500.

The dollar’s dominance isn’t guaranteed forever. With these tools, you can turn a national currency crisis into a personal financial win.