ETF spotlight on WisdomTree Dreyfus Emerging Currency Fund (NYSEArca: CEW), part of an ongoing series.
Assets: $394 million.
Objective: The WisdomTree Dreyfus Emerging Currency Fund is an actively managed ETF that tries to reflect the total income returns in money market rates of select emerging market countries relative to the U.S. dollar.
Holdings: The fund holds an equal-weighted basket of emerging market currencies.
What You Should Know:
- WisdomTree sponsors the fund.
- CEW has an expense ratio of 0.55%.
- The fund is down 1.83% over the past month, down 7.56% over the last three months and down 5.10% year-to-date.
- The fund holds currencies from Brazil, Chile, Mexico, Hungary, Poland, Turkey, South Africa, China, India and South Korea.
- Currency traders who believe in the further debasement of the U.S. dollar may hedge their bet with CEW.
- The ETF offers exposure to developing economies with healthy growth rates, higher interest rates and commodities-driven export industries.
The Latest News:
- Optimism that European leaders will find a solution to the debt turmoil boosted emerging market currencies last week.
- Additionally, the risk-on sentiment helped boost the appeal of riskier equities, along with emerging market currencies.
- However, emerging market currencies were sold off Monday as the Eurozone talks lost momentum, WSJ.com reports.
- German Chancellor Angela Merkel said that any dream of resolving the problems at the Oct. 23 Eurozone summit will be impossible, which put greater pressure on emerging market currencies.
- “The Germans obviously gave a dose of reality,” Win Thin, Brown Brother Harriman’s global head of emerging market strategy, said. “We’ve probably reached the limits of that recent risk rally.”
WisdomTree Dreyfus Emerging Currency Fund
For past stories in this series, visit our ETF Spotlight category.
Max Chen contributed to this article.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. 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.