WisdomTree, an exchange traded fund provider known for its alternative international focus, launched an active U.S. dollar fund and five fixed-income strategies that mitigate interest rate risk.
The actively managed WisdomTree Bloomberg U.S. Dollar Bullish Fund (NYSEArca: USDU) will try to outperform the Bloomberg Dollar Spot Index through the use of short-term, investment grade instruments, according to a press release. USDU has a 0.50% expense ratio.
The managers will position for a strong U.S. dollar against approximately ten developed and emerging market currencies and no more than 20 currencies, with the euro expected to represent the largest exposure. The fund is not expected to outperform if the value of the basket of global currencies appreciates against the U.S. dollar.
“The US dollar’s value continues to evolve with new economic relationships and changing market dynamics,” Luciano Siracusano, WisdomTree Chief Investment Strategist, said in the press release. “We believe both trade flows and market liquidity define the value and role of the U.S. dollar in the global economy. By Benchmarking our fund to Bloomberg’s Index, USDU provides investors with a tool to participate in an environment where the U.S. dollar is rising relative to other currencies.”