WisdomTree Launches Emerging Currency ETF

by on May 6, 2009 | Updated May 14, 2009 | ETFs Mentioned:

WisdomTree, a major ETF sponsor and index developer, announced today the launch of the WisdomTree Dreyfus Emerging Currency Fund. The new ETF will be traded on the NYSE Arca under the ticker CEW. According to WisdomTree President & COO Bruce Lavine, “the ETF provides exposure to both money market rates across 11 Emerging Market countries, as well as movements in these currencies relative to the U.S. Dollar.” At launch, the fund will be invested in:

  • Mexican Peso
  • Brazilian Real
  • Chilean Peso
  • South African Rand
  • Polish Zloty
  • Israeli Shekel
  • Turkish New Lira
  • Chinese Yuan
  • South Korean Won
  • Taiwanese Dollar
  • Indian Rupee

CEW offers exposure to these currencies through the use of forward contracts. The ETF will be equally invested in each of the 11 currencies at launch, and will rebalance quarterly. Since it’s not tied to an underlying index, it qualifies as an actively-managed ETF. CEW has an expense ratio of 0.55%. 

The launch of the emerging markets currency ETF, which is the first of its kind, had been delayed for some time due to the financial crisis. With signs that investors are beginning to put cash back into more risky assets, coupled with increased pessimism regarding the prospects of the U.S. dollar, the time was finally right for the fund launch.

Read WisdomTree’s press release or view CEW’s statistics.