Now ETF investors have a couple more tools to build a global ETF hedge portfolio. No matter whether you are a dollar bull or bear, you can hedge or profit from the dollar's direction, ETFs designed to let investors play currency markets around the world without opening a futures account.
Deutsche Bank AG and Amvescap PLC unit PowerShares Capital Management LLC listed the new ETFs Tuesday -- the PowerShares DB U.S. Dollar Bullish Fund (UUP) and the PowerShares DB U.S. Dollar Bearish Fund (UDN) -- on the American Stock Exchange. The ETFs are designed to take long or short positions in the Deutsche Bank U.S. Dollar Index Futures Index -- Excess Return, which follows the movement of the U.S. dollar against a basket of six major currencies: the euro, the Japanese yen, the British pound, the Canadian dollar, the Swedish krona and the Swiss franc. Both new ETFs have expense ratios of 0.55%, but that will be offset by the yield from the fixed-income securities they hold as collateral for the futures contracts
Comments