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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.)
WisdomTree Dreyfus Chinese Yuan Fund
WisdomTree Dreyfus Brazilian Real Fund
WisdomTree Dreyfus Indian Rupee Fund
WisdomTree DreyfusEuro Fund
WisdomTree DreyfusJapanese YenFund
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.
1 Month Return
CurrencyShares Australian Dollar Tr
CurrencyShares Brit Pnd Sterling Tr
CurrencyShares Canadian Dollar Tr
CurrencyShares Euro Trust
CurrencyShares Japanese Yen Trust
CurrencyShares Mexican Peso Trust
CurrencyShares Swedish Krona Trust
CurrencyShares Swiss Franc Trust
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.