Q:

What is UDN ETF?

A:

Quick Answer

In finance, UDN stands for the DB U.S. Dollar Index Bearish Powershares. Exchange-Traded Funds are similar to stocks. They allow investors to reach restricted investments such as international currencies, sectors, commodities and indices. U.S. Dollar Short ETF's refer to investing in the U.S. dollar through the ETF provider, PowerShares.

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Full Answer

UDN ETF's track the UDN compared to international currencies like the British pound, the Swedish krona, the Japanese yen, the Canadian dollar, the euro and the Swiss franc. Investing in UDN is speculative in nature and takes place in volatile markets. The frequency in the market's movement can cause large gains or losses, so it is not suitable for some investors. UDN volatility is affected by national trade deficits and debt levels, changes in foreign and domestic interest rates, regional or global financial, economic or political situations and events, currency exchange rates and the expectations of investors regarding interest rates.

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