One question that comes up a lot: how are US stocks still rising while the US dollar is falling? At first glance, it feels contradictory — but investors in concentrated strategies like the Global X FANG+ ETF know the answer. A weaker dollar isn’t just making US equities look cheaper globally; it’s also boosting earnings for multinationals with significant offshore revenue — the kind of global giants that dominate this ETF.
The S&P 500 and Nasdaq are hovering near record highs, even as the dollar index falls to levels last seen in early 2022. But this isn’t a blanket rally. It’s a smart rotation into companies with strong earnings, resilient margins, and meaningful global reach. These firms are gaining from currency translation and reinforcing that strength through margin discipline.
Key Takeaways
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A weaker dollar boosts the earnings of US companies with offshore exposure.
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Tech and comms are leading, thanks to international revenues and pricing power.
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You don’t need to go offshore to benefit — plenty of US-listed names are doing the heavy lifting.
Global revenue is the game-changer
Not every sector benefits equally from dollar weakness. Utilities, financials, and real estate earn mostly in the US — so FX doesn’t move the dial. But tech and comms? They bring in nearly half their revenue from overseas.
These firms get a double boost: foreign earnings look better when converted into dollars, and they often dominate their industries with strong pricing power and margins. That combo — global exposure + operational strength — makes them especially attractive for investors looking to play dollar softness.
Source: Bloomberg, 22 Jul 2025
This dollar drop’s a different beast
The dollar’s dropped from 107 to below 99 this year. Normally, that might signal economic stress or capital flight. But this time, the US economy remains solid — consumer spending is up, the labour market’s tight, and credit spreads are stable.
Even as the Fed holds rates, the dollar’s fallen — likely due to softer financial conditions and changing investor sentiment, not weakness at home. That’s giving equities room to run, despite diverging global policies.
Pick your spots in the US
This isn’t a “buy everything” market. Valuation gaps are wider, and winners are emerging based on fundamentals. Targeted investing is key.
ETFs like the Global X FANG+ ETF and FANG+ (Currency Hedged) focus on global-growth companies that benefit directly from foreign exchange market moves. Think:
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Meta and Netflix — stronger ad and subscription revenue abroad.
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Microsoft and Alphabet — global cloud expansion with foreign exchange market tailwinds.
Rather than abandoning US equities, investors expecting continued dollar weakness might focus on names that convert global growth into real earnings — especially those with strong balance sheets.
Expecting AUD to strengthen too? The currency-hedged version offers extra potential, capturing foreign exchange market gains twice — in earnings and through the hedge.
Source: Bloomberg, 22 Jul 2025
Think global — without leaving the US
Usually, a falling dollar sends investors offshore. But many global markets are still under pressure — soft earnings, policy uncertainty, slow growth. Meanwhile, US-listed giants are turning dollar weakness into performance.
That’s shifting the foreign exchange market playbook. Investors aren’t just moving capital offshore — they’re staying put, but tilting toward companies with international exposure. It’s about targeting where the earnings come from and how they respond to foreign exchange market moves.
Global diversification still matters. But in this cycle, the smarter play might be staying in the US — and getting selective.
To remain diversified, and still be a part of the US market, check out Global X’s FANG ETF or the currency hedged version here.
