WisdomTree‘s brand-new exchange traded fund (ETF) has put the currencies of major commodity-producing countries in focus.
The U.S. dollar-denominated WisdomTree Dreyfus Commodity Currency (NYSEArca: CCX) holds currency futures contracts on the world’s major commodity producers, including the Australian dollar, Brazilian real, Canadian dollar, Chilean peso, Norwegian krone, New Zealand dollar, Russian ruble and South African rand. [Natural Resources, Emerging Market Consumers Get New ETFs.]
A commodity-rich country is defined by WisdomTree as any country that has at least 40% of its GDP tied to natural resources. The countries in CCX are the world’s largest exporters of several major commodities, including silver, gold, natural gas, sugar and zinc. reports Trang Ho for Investor’s Business Daily. [Commodities And Academics Come Together In One ETF.]
The weighting of each country is 12.5%.
The ETF gives investors an opportunity to get exposure to countries and currencies that benefit from rising commodity prices and that pay higher interest rates than the dollar.
Visit our currency page for more stories about currency ETFs.
Tisha Guerrero contributed to this article.
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