Dollar Slips 11.45 Percent This Year As Global Currencies Rise

When reviewing the top 10 rated exchange-traded funds and notes this month, an obvious theme emerges. As the U.S. dollar erodes in value, nine of the 10 funds directly benefit.

The U.S. Dollar Index compares our "greenbacks" to a basket of six major world currencies, and shows that we have lost 11.45% in the last year. Even after fractionally positive months of April and May, the year-to-date loss is 4.98%. The May 31 reports of shrinking industrial production and nonfarm payrolls coincided with CPI inflation running at 4.2% in the United States.

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Another big difference between America and Europe is in the balance of trade. While Europe is a net exporter, America imports more goods than it exports. For companies to return their sales revenue to their home country they sell dollars, further pushing down its value.