When will New Zealand get its own exchange traded fund (ETF) as well as a currency ETF? The New Zealand dollar, also known as the kiwi, has gained about 20% against the U.S. dollar this year, says Gary Gordon for ETF Expert. That’s double what the CurrencyShares Australian Dollar Trust (FXA) has increased.
New Zealand’s economy has a lot going for it. For one, homes typically spend less than one month on the market. (Try to imagine what that would be like here!) New Zealand’s large manufacturing and service sectors and efficient agriculture sector are the main drivers behind its economy: The exports of goods and services make up about one-third of its GDP, according to the New Zealand Economic and Financial Overview for 2007. Economic growth is predicted to remain relatively calm for the short-term. Over the last 10 months, New Zealand’s stock market rose 30%. However, this doesn’t account for the 20% loss the economy suffered when most of the global markets declined. It sure would be nice if there was an ETF that tracked this market.
Read the disclosure, as Tom Lydon is a board member of Rydex Investments.
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.