While it is still too early for any yield information for PFEM, as an indication PCY shows a trailing 12 month yield of 4.17% but with PFEM's shorter maturity its yield could be slightly lower.
For the last three months the U.S. dollar has gone up against most of the currencies captured in PFEM. The dollar is up about 4% each against the Russian ruble and Brazilian real. A slow appreciation of the dollar will be a drag on PFEM and the trend is actually longer than three months. For the last two years the dollar is up 11% against the ruble and 25% against the real. This coincides with general under performance of resource related stocks and commodities.
This does not make PFEM a bad fund. Actually it is a good thing that the risks are relatively easy to isolate. At some point the downtrends in commodity related securities and the respective currencies will turn higher and when they do PFEM will be a good hold but until investors will be better off with PCY.
At the time of publication the author held no positions in any of the stocks mentioned.
This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.