WisdomTree Launches New Dollar Bullish ETF

Thanks to Abenomics, WisdomTree is enjoying tremendous  success with its Japan Hedged Equity Fund (NYSEARCA:DXJ) this year. The product returned an impressive 36% in the year-to-date time frame. The success goaded the issuer to launch quite a few products this year.

This month WisdomTree is back with its latest launch of The WisdomTree Bloomberg U.S. Dollar Bullish Fund which seeks to provide exposure to the U.S. dollar against a broad basket of developed and emerging market currencies.

The timing of this launch seems to be perfect, given that Fed will eventually begin its taper program in early 2014.

USDU in Focus

The new ETF, launched on December 18, tracks the performance of the Bloomberg Dollar Total Return Index. The fund follows an active management strategy and seeks to deliver better returns than the index, although before fees and expenses.

The index aims to benefit fromx any appreciation in the U.S. dollar relative to a basket of 10 developed and emerging market currencies, charging investors 50 basis points annually. These currencies have the highest liquidity and also the largest U.S. trade flows.

The fund has the highest exposure to the Euro zone currency (34.32%), followed by the Japanese yen (16.13%), Canadian dollars (11.94%) and pound (10%) each with double-digit exposure. The fund has the least exposure in China (3.01%) and Singapore (2.10%) currencies. In a nutshell, the fund has half of its exposure in Europe, the Middle East & African currencies. (Read: Japan ETFs: One Year After Abenomics)

To ride the appreciation of the greenback against the basket of these currencies, the fund invests in very short-term investment grade government and corporate debt securities. However, unlike money market funds, the fund is not intended to keep its share prices constant.

(...)Click here to continue reading the original ETFDailyNews.com article: WisdomTree Launches New Dollar Bullish ETF

You are viewing an abbreviated republication of ETF Daily News content. You can find full ETF Daily News articles on (www.etfdailynews.com)

No related posts.