Fed Rate Concerns Pulling On Emerging Currency ETFs | Page 2 of 2 | ETF Trends

Citigroup, the world’s largest currency dealer, though, warned that the emerging-market currency sell-off is accelerating.

“We could go back once again to the concept of ‘Fragile Five’ currencies, even if this is undeserved as the macroeconomic picture in South Africa, Turkey and Brazil has improved,” Viktor Szabo, portfolio manager at Aberdeen Asset Management, said in the article.

The Fragile Five currencies include the Brazilian real, Indonesian rupiah, South African rand, Indian rupee and Turkish lira. Several of the more vulnerable currencies plunged as much as 17%between the end of 2013 and start of February. Looking at CEW’s holdings, India is 6.8%, Brazil is 6.8%, Indonesia is 6.7%, South Africa is 6.6% and Turkey is 6.6%. [Tapering Concerns Plague These ETFs]

WisdomTree Emerging Currency Strategy Fund

For more information on developing economies, visit our emerging markets category.

Max Chen contributed to this article.