Rupee’s Plunge Could Affect Several ETFs

Other ETFs could be affected by the weaker Indian currency as well. Indian steel exports could jump 30% to 6.8 million metric tons in the year ending March 31, reports Abhishek Shanker for Bloomberg. That could help soften the blow for WisdomTree India Earnings ETF (NYSEArca: EPI), which allocates almost 10% of its weight to the material sector.

The WisdomTree Emerging Currency Fund (NYSEArca: CEW) may not be so fortunate. That ETF allocates 6.6% of its weight to the rupee. That does not sound like much, but CEW is essentially an equal-weight product and many of the ETF’s other holdings, such as the Philippine peso and Thai baht, are already under pressure, along with the rupee. CEW has lost 4.1% in the past month.

WisdomTree Indian Rupee Fund

ETF Trends editorial team contributed to this report. Tom Lydon’s clients own shares of GLD.