Exchange-traded funds with investment strategies that focus on niche markets continue to emerge at a fast clip.
WisdomTree Investments and Dreyfus Corporation, for instance, recently teamed up to launch the WisdomTree Dreyfus Currency Income ETFs. These ETFs will allow investors to gain exposure to non-U.S. money market yields and their associated currency movements.
The fund ticker symbols are as follows: o WisdomTree Dreyfus Chinese Yuan Fund (CYB) o WisdomTree Dreyfus Indian Rupee Fund (ICN) o WisdomTree Dreyfus Brazilian Real Fund (BZF) o WisdomTree Dreyfus Euro Fund (EU) o WisdomTree Dreyfus Japanese Yen Fund (JYF)
The ETFs attempt to earn current income reflective of money market rates available to U.S. investors in the specified country or region. The funds also seek to provide exposure to changes in the value of a designated non-U.S. currency relative to the U.S. dollar.
WisdomTree’s Currency Income ETFs charge annual expense ratios that range from 0.35 to 0.45 percent.
Although each fund invests in very short-term, investment-grade instruments, the funds are not money market funds, and it is not the objective of the funds to maintain a constant share price.
Ron DeLegge is the San Diego-based editor of www.etfguide.com.