CCX: New Actively-Managed Commodity Currency ETF

September 28, 2010 by  
Filed under Actively Managed ETFs, Commentary, ETF IPOs (New ETFs), ETFs

WisdomTree Dreyfus Commodity Currency Fund (CCX) began trading last Friday (9/24/10).  It is an actively-managed ETF designed to provide broad-based exposure to money market rates and currency movements of selected commodity-producing countries across major export groups and geographic regions.

According to the Case for the WisdomTree Dreyfus Commodity Currency Fund, commodity currencies tend to benefit during periods of accelerating global growth and U.S. inflation while typically entailing less downside risk than commodities.  Additionally, the presently higher interest rates of commodity-exporting countries can provide an interest rate carry advantage relative to the world’s primary reserve currencies.

CCX can hold up to 10 currencies on an equally-weighted, annually selected, and rebalanced quarterly approach.  The fund employs daily active management of the underlying investments.  At the present time, only eight currencies are in the portfolio (four from developed markets and four emerging markets):  Australian dollar, Canadian dollar, Norwegian krone, New Zealand dollar, Brazilian real, Chilean peso, Russian ruble, and South African rand.

The fund has an expense ratio of 0.55% and additional information can be found in the overview and press release (pdf).  CCX becomes the ninth exchange-traded product representing a basket of currencies as opposed to just a single currency.

Disclosure covering writer, editor, and publisher:  No positions in any of the securities mentioned.  No positions in any of the companies or ETF sponsors mentioned.  No income, revenue, or other compensation (either directly or indirectly) received from, or on behalf of, any of the companies or ETF sponsors mentioned.

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