Wisdom Tree has launched the Wisdom Tree Dreyfus Emerging Currency fund on NYSE Arca, in conjunct...
Wisdom Tree has launched the Wisdom Tree Dreyfus Emerging Currency fund on NYSE Arca, in conjunction with The Dreyfus Corporation, part of BNY Mellon Asset Management.
The fund is an actively managed ETF that delivers exposure to money-market rates and currency movements in emerging markets.
Rather than track an index, the fund invests in US money-market investments and forward currency contracts to deliver a risk-return exposure similar to money-market instruments in the relative currencies.
A basket of eight to 12 currencies is selected on an annual basis and the assets are invested in equal portions to provide exposure to these currencies, with this exposure reset quarterly.
As a result, the ETF combines a passive approach to currency selection and weighting, along with active investment selection of the underlying investments.
The ETF comprises a range of constituent currencies at launch, including the Mexican peso, Brazilian real, Chilean peso, South African rand, Polish zloty, Israeli shekel, Turkish new lira, Chinese yuan, South Korean won, Taiwanese dollar and the Indian rupee.
WisdomTree president and COO Bruce Lavine comments: "Our new Emerging Currency fund fills an important void in the ETF landscape by giving investors the first currency-basket product delivered in the 1940 Act fund structure."
He adds that the fund should be attractive to investors seeking to diversify outside the US dollar or access a less correlated asset class.
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