Comments on: ETF Deathwatch for February 2010

By: Ron Rowland

Ron Rowland — Fri, 19 Feb 2010 15:19:22 +0000

Robert, typically when an ETF closes they have a forced redemption of all outstanding shares, a liquidation of the portfolio, and then return the assets to investors.

However, some products do not do the liquidation step, they just delist and leave shareholders in the dark. For example, Credit Suisse did this with three ETNs last April…
http://investwithanedge.com/credit-suisse-etns-now-trading-otc

It is always in your best interest to get out before the product is delisted.

By: Robert H.

Robert H. — Thu, 18 Feb 2010 22:26:42 +0000

What happens to the assets of an ETF when it deceases/dies?
Do investors regain their investments.

By: Ron Rowland

Ron Rowland — Thu, 18 Feb 2010 21:28:02 +0000

David, I currently do not track ETFs available to investors outside the US. At the present time, all the pairs listed for trading in the US have the US dollar as one of the pairs. You would have to check with Canadian ETF prodviders to see if they might have what you are seeking.

If you have a US account, I guess you might be able to synthesize what you are trying to get by buying FXC and shorting FXY. The dollar positions in each trade should cancel each other out, leaving you with a long loonie – short yen pair. I’m not sure it would be worthwhile after all expenses are taken into account

By: David R. (Canada)

David R. (Canada) — Thu, 18 Feb 2010 17:52:42 +0000

Is there an ETF for the Canadian dollar/Japanese Yen pair? Also an inverse if possible.
Thanks.

David R.

By: Lynn Beecher

Lynn Beecher — Thu, 18 Feb 2010 17:41:49 +0000

This is a great and much-needed service because it can help avoid investment churning and losses.

Suggestion: indicate which entries in each new issue are added or otherwise a change relative to the previous issue. That would save your readers the considerable time now required to compare issues manually in order to identify such changes.

By: Ron Rowland

Ron Rowland — Thu, 18 Feb 2010 17:25:18 +0000

Here is a list of 17 currency related ETFs and ETNs. There are additional ones, but they generally have less trading volume than these, and many of these should be treated with care. I do not do options trading so I cannot comment on their option chains.

DRR Market Vectors Double Short Euro ETN
EUO ProShares UltraShort Euro
UUP PowerShares DB US Dollar Index Bullish
FXC CurrencyShares Canadian Dollar Trust
FXY CurrencyShares Japanese Yen Trust
FXM CurrencyShares Mexican Peso Trust
CYB WisdomTree Dreyfus Chinese Yuan
DBV PowerShares DB G10 Currency Harvest
FXA CurrencyShares Australian Dollar Trust
CEW WisdomTree Dreyfus Emerging Currency
FXS CurrencyShares Swedish Krona Trust
YCS ProShares UltraShort Yen
BZF WisdomTree Dreyfus Brazilian Real
FXB CurrencyShares British Pound Trust
UDN PowerShares DB US Dollar Index Bearish
FXF CurrencyShares Swiss Franc Trust
FXE CurrencyShares Euro Trust

By: Weeb

Weeb — Thu, 18 Feb 2010 15:38:45 +0000

Roland, can you provide currency ETFs (not pairs) for individual countries, as well as, ETFs for say (1) strong Asian currencies groups, or (2) Brick countries, (3) etc.? Do currency ETFs typically have liquid option chains?
Is it a viable trading strategy to purchase options (puts and calls) against a foreign currency such as Canada, Australia, New Zealand’s, Bric countries, etc currencies?
If the above country currency’s ETF list is long could you provide a source on the internet that I can find/explore these ETFs. Only want ETFs not ETNs.
Thanks much.
Weeb.