This Day On The Street
Continue to site
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

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 Ratings.

In keeping with TSC's Investment Policy, employees of 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.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

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
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
EU $20.54 -0.39%
BZF $15.17 0.00%
CYB $24.97 0.00%
FXA $76.09 0.00%
FXS $121.25 0.00%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs