It has paid to be choosy with emerging markets currencies this year as some of CEW’s holdings have not been as bad as others. For example, the yuan and zloty have been stellar relative to the emerging markets currency lot. The yuan is CEW’s largest holding at 6.84% while the zloty accounts for 6.61% of the fund’s weight.

“In bouts of EM selling we expect to see greater differentiation between currencies and when the Fed does begin tapering QE this differentiation will increase,” said Rabobank.

WisdomTree Emerging Currency Fund

ETF Trends editorial team contributed to this post.