Twelve new currency ETNs are now available for trade on Xetra. ETF Securities has issued the unique group of ETNs, which focus on foreign exchange rates with the euro, as well as emerging market currency.
According to the press release, the new ETNs will allow investors the ability to capture exchange rates of the euro to other currencies such as the Australian dollar, Canadian dollar, New Zealand dollar and American dollar.
Even more unique is the fact that investors can decide to focus on either the long or short side of a trade, since the ETNs allow profits from the rise and fall of currency exchange rates. The new ETNs also allow investors to track the US dollar against specific emerging market currencies, such as the Chinese renminbi or the Indian rupee.
Michael Geister, Senior Executive at ETF Securities explains further in the press release by saying, Of particular interest will be the Emerging Market currency ETNs, which offer investors the opportunity to participate in both the potential currency appreciation and a more dynamic interest rate environment. Both investment strategies, potential currency appreciation and changing interest rates are possible with Currency ETCs, either long or short.
Continuing to play on the popularity of regional investments, iShares is expanding its line of MSCI-tracking products with the addition of four new country-specific offerings. The funds target popular investment destinations, including Poland, China, Indonesia, and New Zealand.
The four new funds are as follows:
1. iShares MSCI China Small-Cap Index Fund
2. iShares MSCI Poland Investable Market Index Fund
3. iShares MSCI Indonesia Investable Market Index Fund
4. iShares MSCI New Zealand Investable Market Index Fund
The iShares China Small-Cap Index Fund will invest in the bottom 14% of stocks by market cap, according to an SEC filing, and the ETF will include more than 200 stocks in a number of industries. The iShares MSCI Poland Investable Market Index Fund will track a benchmark of 63 stocks in the top level of market capitalization.
The two new Indonesia and New Zealand funds will invest in the largest stocks by market cap in each respective country, with the Indonesia fund including 41 stocks, followed by 22 for New Zealand. The iShares MSCI New Zealand Investable Market Index Fund will be the first country-specific fund with a focus on New Zealand based equities. No tickers or annual fees have been announced.
WisdomTree has filed with the SEC to create two new funds that track the change of the American dollar against a basket of world currencies. The new funds will compete with PowerShares US DB Dollar ETF (UUP: Quote, Profile, Advanced Chart, News), which has attracted more than $3 billion from investors.
The WisdomTree Rising Dollar Fund, one of the new funds, will seek to provide performance equivalent to the change in the value of the US dollar against 15 other world currencies. The fund will invest in Treasury bonds, as well as money markets and currency contracts, to derive returns for its investors.
WisdomTree Commodity Currency Fund will seek out currency investments in countries with strong commodity producing industries. The fund is centered on the relative value of the currencies represented by the following countries: Australia, Brazil, Canada, Chile, Indonesia, Mexico, New Zealand, Norway, Russia and South Africa, according to the SEC filing.
An active central bank in the United States is keeping interest rates so low that traders are now re-entering carry trade positions to profit from the difference in bid and ask interest rates at foreign banks. As rates continue to fall in the United States, carry trade investments in other foreign currencies will only grow more popular and profitable.
Bloomberg reports that between March 20 and April 10, investors could have snapped up an eight percent gain by investing Dollars, Euros and Yen in foreign currencies such as the Brazilian Real, Hungarian Forint, Indonesian Rupiah, South African Rand , New Zealand and Australian Dollars. The recent gain is the best three week growth recorded since 1999.
The carry trade has decreased prices for leading currencies as they are often sold to buy higher yielding currencies in foreign banks. The PowerShares Double US Dollar Index Bullish ETF (UUP: Quote, Profile, Advanced Chart, News) consolidated through March to fall to $25.40 on higher short interest on the US dollar.
The very first options on actively-managed ETFs were released today, as WisdomTree and the NASDAQ OMX Group have reached an agreement to allow WisdomTree’s actively managed currency funds to start listing options on the exchange. WisdomTree’s funds will be the first actively managed funds to give investors access to options, opening the door for option traders to access actively managed ETFs.
The exchange-traded funds strive to achieve consistent profits in foreign money markets while giving investors added exposure to changes in the price of foreign currencies against the US dollar.
Option interest in ETFs has soared as investors flock to the funds, which commonly sell options in $1 strike price increments. Stocks and other less liquid listings often price options at $2.50 or $5 intervals, which results in higher premiums and less targeted investing strategies for option traders. The new option contracts will begin trading today, March 17.
Twelve new currency ETNs are now available for trade on Xetra. ETF Securities has issued the unique group of ETNs, which focus on foreign exchange rates with the euro, as well as emerging market currency.
Continuing to play on the popularity of regional investments, iShares is expanding its line of MSCI-tracking products with the addition of four new country-specific offerings. The funds target popular investment destinations, including Poland, China, Indonesia, and New Zealand.
WisdomTree has filed with the SEC to create two new funds that track the change of the American dollar against a basket of world currencies. The new funds will compete with PowerShares US DB Dollar ETF (UUP: 
An active central bank in the United States is keeping interest rates so low that traders are now re-entering carry trade positions to profit from the difference in bid and ask interest rates at foreign banks. As rates continue to fall in the United States, carry trade investments in other foreign currencies will only grow more popular and profitable.
The very first options on actively-managed ETFs were released today, as WisdomTree and the NASDAQ OMX Group have reached an agreement to allow WisdomTree’s actively managed currency funds to start listing options on the exchange. WisdomTree’s funds will be the first actively managed funds to give investors access to options, opening the door for option traders to access actively managed ETFs.
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