With the daily presence of impactful headlines coming out of Europe and undoubtedly affecting securities markets globally, we examined Currency ETFs recently from a performance perspective.
The best performing currency related ETF outside of “Short Euro” plays, is an ETF that likely flies under the radars of most, PowerShares DB G10 Currency Harvest Fund (NYSEArca: DBV), and it has rallied 4.88% year to date.
The ETF grants exposure to a basket of currency futures on G10 countries with the goal of exploiting a trend that has been historically observable over time.
PowerShares developed the methodology behind DBV under the premise that currencies that have had high interest rates tend to appreciate in value compared to currencies that have historically been linked to low interest rates.
The G10 Currency universe is made up of U.S. Dollars, Euros, Japanese Yen, Canadian Dollars, Swiss Francs, British Pounds, Australian Dollars, New Zealand Dollars, Norwegian Krone, and Swedish Krona. Since inception back in 2006, the fund is up 0.48%.
PowerShares DB G10 Currency Harvest Fund
For more information on Street One ETF research and ETF trade execution/liquidity services, contact pweisbruch@streetonefinancial.com.