Currency ETFs Offer a Play on a Weaker Dollar
by Don Dion
With the euro pressing against $1.48 level and gold over $1,000, inflation speculation is heating up. Those wishing to play this strategy have several options, including international equities, commodities and precious metals. Another is currency itself.
Currency ETFs are a more direct play on a weaker dollar, and both Rydex and WisdomTree offer several funds. With first-mover advantage, Rydex grabbed the most widely traded currencies. CurrencyShares Euro and CurrencyShares Japanese Yen have more than $500 million in assets -- impressive for currency ETFs.
WisdomTree picked off the more volatile currencies with its WisdomTree Dreyfus New Zealand Dollar, Brazilian Real and South African Rand, in addition to the WisdomTree Dreyfus Indian Rupee and WisdomTree Dreyfus Chinese Yuan. Those five funds have assets of $14 million, $100 million, $5 million, $10 million and $125 million, respectively. (ICN and SZR currently have volume of 5,000 or fewer shares...
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