“The Fund is an actively managed exchange-traded fund that seeks to provide total return by investing in exchange-listed currency futures contracts that produce long exposure to one or more non-U.S. dollar currencies and short exposure to the U.S. Dollar,” according to the filing.
Established dollar exchange traded funds on the market include the PowerShares DB U.S. Dollar Index Bullish Fund (NYSEArca: UUP), the tracking exchange traded fund for the U.S. Dollar Index. UUP tracks the price movement of the U.S. dollar against a basket of currencies, including the euro, Japanese yen, British pound, Canadian dollar, Swedish krona and Swiss franc.
The WisdomTree Bloomberg U.S. Dollar Bullish Fund (NYSEARCA: USDU) tracks the dollar against a broader group of developed and emerging market currencies in an attempt to outperform the Bloomberg Dollar Total Return Index. That ETF features exposure to emerging markets currencies whereas UUP only measures the dollar against major developed market currencies. Both UUP and USDU are long dollar ETFs, but the Elkhorn ETF will take a different approach.
“The Adviser will choose the currency futures contracts comprising the portfolio based upon its analysis of which currencies are most likely to rise in price relative to the U.S. dollar and upon the characteristics of the underlying futures contracts. Currencies rise and fall relative to the U.S. dollar based upon the present political and economic factors affecting each country. The Adviser will examine these factors in evaluating potential investments. Additionally, the Adviser will consider a currency futures contract’s volatility and liquidity,” according to Elkhorn’s SEC filing.
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The Elkhorn Long Non-USD Currency ETF will trade on the Bats Exchange, but the filing did not include a ticker or expense ratio.
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