This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
$1 buys you full access to ALL of TheStreet's Subscription Services! Learn More

Five New Ways to Play the Currency Market

For those investors brave enough to play the currency markets and who have been looking for a "do-it-yourself" vehicle, Wisdom Tree Investments and Dreyfus have teamed up to develop currency ETFs that start trading on May 13.

Yes, from the comfort of your own home, you too can mix it with the big guys in the tumultuous world of global currency investing.

Investors should note that the WisdomTree/Dreyfus funds invest in very-short-term, investment-grade instruments. However, they are not "money market" funds and are not designed to maintain a constant share price.

The five new ETFs went effective as of April 8 and are listed below. We do not have a rating record for these funds, as they have just been released, and the TSC models require at least one year of performance before we can issue a rating on an ETF. (Please see the table below.)


Fund Name Ticker
WisdomTree Dreyfus Chinese Yuan Fund CYB
WisdomTree Dreyfus Brazilian Real Fund BZF
WisdomTree Dreyfus Indian Rupee Fund ICN
WisdomTree DreyfusEuro Fund EU
WisdomTree DreyfusJapanese YenFund JYF

However, we can rate the other main supplier of currency ETFs: Rydex Investments and its brand of CurrencyShares funds.

Below is a list of these funds and their TSC ratings.

Name Ticker TSC Grade 1 Month Return YTD Return
CurrencyShares Australian Dollar Tr FXA A+ -1.19 6.19
CurrencyShares Brit Pnd Sterling Tr FXB B 0.74 1.45
CurrencyShares Canadian Dollar Tr FXC A- -3.38 -1.97
CurrencyShares Euro Trust FXE A+ 4.36 9.17
CurrencyShares Japanese Yen Trust FXY A+ 4.83 12.47
CurrencyShares Mexican Peso Trust FXM A+ 0.51 3.51
CurrencyShares Swedish Krona Trust FXS A+ 4.04 9.81
CurrencyShares Swiss Franc Trust FXF A+ 4.75 14.32

With poor returns on the world equity markets likely to continue and the bond markets requiring continual drip-feeding of assistance from the Federal Reserve, investors in the world currency markets fared very well in the first quarter. Most of the Rydex funds carry an A-plus rating.

Investors should take careful note that investing in the global currency markets can carry significant and specific risks that may not be present in more conventional equity and bond markets. These markets can change on a dime in some instances and can exhibit a high degree of volatility.

Sam Patel, CFA, is the manager of mutual fund research for the TheStreet.com Ratings.

In keeping with TSC's Investment Policy, employees of TheStreet.com Ratings with access to pre-publication ratings data must pre-clear any potential trade through the legal department, and are prohibited from trading any security that is the subject of an unpublished rating revision until the second business day after the rating is published.

While Patel cannot provide investment advice or recommendations, he appreciates your feedback; click here to send him an email.

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,786.53 +67.53 0.38%
S&P 500 2,060.54 +7.79 0.38%
NASDAQ 4,709.6230 +7.7560 0.16%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs