For the time-being, though, the only major currency on an uptrend is our very own greenback.
Meanwhile, WisdomTree is getting set to launch a new currency fund for emerging markets. The Emerging Currency Fund (CEW) is set to launch toward the end of September, reports Ray Hendon for Seeking Alpha. WisdomTree’s line of single-currency funds that launched earlier this year are classified as actively managed by the Securities and Exchange Commission (SEC), and from the sounds of it, this will be actively managed, too.
The fund will be a basket of up to 12 currencies and as few as eight, depending on what the fund manager deems necessary. Currently, there are 10 currencies in the fund, many of which offer new exposure to ETF investors, including the Polish zloty, Hungarian forint and the Turkish lira. The fund is equal-weighted and will have an expense ratio of 0.55%.
Currency-focused ETFs:
- Market Vectors Double Short Euro (DRR), up 23.6% since May 22 inception
- CurrencyShares Euro Trust (FXE), down 4.2% year-to-date
- PowerShares U.S. Dollar Bullish (UUP), up 4.3% year-to-date
- WisdomTree Dreyfus Brazilian Real (BZF), down 4.2% since May 22 inception
For full disclosure, Tom Lydon’s clients own shares of UUP.
Read the disclosure, as Tom Lydon is a board member of Rydex Funds.