In an effort to offer diversification beyond equities, fixed-income and cash, Rydex has launched another currency exchange traded fund (ETF) – Japanese yen. The CurrencyShares Japanese Yen Trust (FXY) started trading this week, the latest of eight that Rydex offers to advisors. Jesse Emspak of Investor’s Business Daily reports Rydex chose to offer the yen because it’s the second most traded currency vs. the dollar and the yen is at a 4 year low now. Friday it ended trading at 121.67 yen to the dollar. Japanese interest rates are low, with the Bank of Japan rate at 0.25% and 10 year notes at 1.7%. Any rebound in Japan’s economy will strengthen the yen but investors could be hurt if there were a large slowdown.

Read the disclosure, as Tom Lydon is a board member of Rydex Funds.

The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Mr. Lydon serves as an independent trustee of certain mutual funds and ETFs that are managed by Guggenheim Investments; however, any opinions or forecasts expressed herein are solely those of Mr. Lydon and not those of Guggenheim Funds, Guggenheim Investments, Guggenheim Specialized Products, LLC or any of their affiliates. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.