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.
Capitalizing upon the current popularity of emerging ETFs, Emerging Global Advisors has launched its second exchange-traded fund of 2009. The new fund, named Emerging Global Shares Dow Jones Emerging Markets Titans Composite Index Fund (EEG: Quote, Profile, Advanced Chart, News), seeks to track the Dow Jones Titan Index, but with several amendments to the original index.
China Offshore: 20.43%
Brazil: 20.29%
India: 18.15%
Russia: 14.24%
Mexico: 10.07%
South Africa: 8.30%
Chile: 2.74%
Malaysia: 1.85%
Indonesia: 1.53%
Kuwait: 1.04%
The new ETF will invest in 100 of the top stocks of the Dow Jones Emerging Market Titan Index. To protect against bubble investments, the fund will ensure that no sector has more than 10% of the vested interest of the fund. The fund is just one of 10 sector-based ETFs Emerging Global Advisors plans to launch in the near future.
The Emerging Global Shares Dow Jones Emerging Markets Titans Composite Index Fund will trade on the NYSE Arca with an annual expense of .75%.
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.
A considerable group of equity and currency ETFs from WisdomTree Trust will be paying out quarterly distributions to end 2008. Aside from two currency funds, the remaining funds on the list report zero long or short-term capital gains. Business Wire identifies an inventory of 42 equity ETFs and eight currency ETFs declaring a three-month distribution to be payable December 26, 2008. The equity list shows the lowest distribution amount to be $0.091 for WisdomTree India Earnings Fund (EPI: Quote, Profile, Advanced Chart, News) and the highest to be $4.369 for WisdomTree Pacific ex-Japan Total Dividend Fund (DND: Quote, Profile, Advanced Chart, News).
WisdomTree will also pay distributions on the same date for the eight currency ETFs. The lowest distribution is declared to be $0.011 for WisdomTree U.S. Current Income Fund (USY: Quote, Profile, Advanced Chart, News). On the other end of the spectrum, the largest distribution amount will be $1.615 for WisdomTree Dreyfus South African Rand Fund (SZR: Quote, Profile, Advanced Chart, News).
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.
Capitalizing upon the current popularity of emerging ETFs, Emerging Global Advisors has launched its second exchange-traded fund of 2009. The new fund, named Emerging Global Shares Dow Jones Emerging Markets Titans Composite Index Fund (EEG: 
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.
A considerable group of equity and currency ETFs from WisdomTree Trust will be paying out quarterly distributions to end 2008. Aside from two currency funds, the remaining funds on the list report zero long or short-term capital gains. 
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