San Francisco, CA (PRWEB) January 12, 2006
The world of Exchange Traded Funds continues to expand into uncharted territory. Rydex Investments has launched the first Currency ETF. Each share of the ETF will represent 100 euros plus accrued interest. In this way an investor can gain when the Euro gains in price as well as accruing interest while the fund is held. Of course this would be true if the investor was long the fund. Exchange Traded Funds trade like stocks so if an investor believes the Euro is about to take a drop, the investor could short this fund like a stock is shorted. Each share of the trust represents 100 Euros.
This fund likely to not only be popular with individual traders but also be popular with hedge funds that want to use this fund to hedge against the US Dollar.
There are other funds that can also act as a hedge besides the new Euro Fund. StreetTracks Gold fund can also act as a hedge against the dollar, however the advantage of the new Euro fund is that the investor accrues interest while the Gold fund does not.
Interest on the primary account accrues daily, with rates based on the most recent Euro Over Night Index Average minus 0.27%, paid monthly. The rate can change over time, the fund's backers say.
The fund was launched on the NYSE. This is another victory for the NYSE after attracting the streetTracks gold fund, which has proven to be immensely popular. The gold fund is one of the fastest growing funds. There are high expectations for the Euro fund, as it is also expected to be very popular with investors.
AS for the NYSE, they are very excited to be chosen as the exchange to host this fund. According to NYSE officials, it plans to introduce more currency products in the not to distant future.
For the latest information on the fast changing Exchange Traded Fund Industry visit http://www.exchangetradedfundinvesting.com You will find information on rankings of funds based on returns and popularity, articles, market conditions and more.