Yes, there's more. And yes, it's another new innovation in the world of ETFs. Not only are we seeing an increase in exchange traded funds, but they are getting more creative as well.
This time it's WisdomTree that is defining a new type of ETF. The WisdomTree Dreyfus Emerging Currency ETF (CEW) is a new fund that consists of emerging market currencies. The foreign currency ETF consists of a basket of forward contracts on 11 emerging market foreign currencies. There is no underlying index for the ETF, so it is considered to be actively managed and will rebalance quarterly. As of launch, each currency will receive an equal 9% balance in the fund.
As for the currencies in the new ETF, they are: the Mexican and Chilean Peso, the South African Rand, the Polish Zloty, the Taiwan Dollar, the Chinese Yuan, the South Korean Won, the Isreal shekel, the Brazilian Real, the Indian Rupee and the Turkish Lira. All currencies from what are considered to be emerging markets right now.
With the U.S. economy in it's current state, some investors are looking to gain international exposure from investments abroad. Foreign ETFs and foreign currency ETFs are two good places to look to implement that investment strategy. And while there are other currency ETFs that are similar, this new innovative ETF is the first of its kind, but hopefully not the last.
This time it's WisdomTree that is defining a new type of ETF. The WisdomTree Dreyfus Emerging Currency ETF (CEW) is a new fund that consists of emerging market currencies. The foreign currency ETF consists of a basket of forward contracts on 11 emerging market foreign currencies. There is no underlying index for the ETF, so it is considered to be actively managed and will rebalance quarterly. As of launch, each currency will receive an equal 9% balance in the fund.
As for the currencies in the new ETF, they are: the Mexican and Chilean Peso, the South African Rand, the Polish Zloty, the Taiwan Dollar, the Chinese Yuan, the South Korean Won, the Isreal shekel, the Brazilian Real, the Indian Rupee and the Turkish Lira. All currencies from what are considered to be emerging markets right now.
With the U.S. economy in it's current state, some investors are looking to gain international exposure from investments abroad. Foreign ETFs and foreign currency ETFs are two good places to look to implement that investment strategy. And while there are other currency ETFs that are similar, this new innovative ETF is the first of its kind, but hopefully not the last.
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