ETF Securities has launched its first range of currency basket ETPs on the London Stock Exchange today and will be launching them on the Deutsche Boerse on the 14th of July 2014….
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ETF Securities’ new suite of products offers investors a transparent and cost effective way to get exposure to the currency markets by gaining access to a range of currencies simultaneously.
The new currency basket ETPs include 4 tactical currency baskets and 1 strategic currency basket. The tactical currency baskets are offered in both a bullish and bearish ETP version:
- The ETF Securities US Dollar G10 Basket, the ETF Securities Euro G10 Basket and the ETF Securities Pound Sterling Basket are based on a Morgan Stanley index designed to provide a measure of general US$, € and GBP performance against G10 currencies respectively.
- The ETF Securities Commodity Currency Basket is based on a Morgan Stanley index designed to reflect the performance of currencies whose economies rely heavily on the export of commodity assets. The basket is comprised of the Australian Dollar, the New Zealand Dollar, the Norwegian Kroner and the Canadian Dollar, which are collectively known as commodity currencies.
The strategic currency basket is based on four separate component strategies, which reflect distinct investment themes within the currency industry:
- The ETF Securities Multi-FX Basket is based on a Morgan Stanley index designed to identify and capture opportunities for returns across a selection of G10 currencies against the US Dollar.
Currency basket ETPs provide investors with a “one-stop shop” offering exposure to multiple currencies and multiple strategies simultaneously. Due to the generally low or negative correlation of currencies with most traditional and alternative asset classes, an allocation to a currency basket within a multi-asset portfolio may help to reduce the overall risk thanks to its diversification benefit.
Martin Arnold, Senior Research Analyst, ETF Securities adds:
“We view this suite of products as a natural progression for our business, which already boasts a strong expertise in currency ETPs. Currency baskets can provide investors with a unique source of return generation by gaining direct access to the key investment themes driving financial markets. Not only can investors benefit from taking a tactical view on currency direction, but in an environment of ultra-loose central bank policy, managing currency exposures is critical to overall portfolio performance.”
ETF Securities launched its currency platform in 2009 when it introduced the first ever single currency ETPs in Europe. It has seen its AUM grow to over US$580mn since launch. The current suite contains 86 different single currency ETPs and covers all G10 and some emerging market currencies.
|ETFS G10 vs USD Multi Strategy FX Basket Security||LSE
|ETFS Bearish USD vs Commodity Currency Basket Securities||LSE
|ETFS Bullish USD vs Commodity Currency Basket Securities||LSE
|ETFS Bearish GBP vs G10 Currency Basket Securities||LSE||JE00B3XLZZ09||SGBB LN||0.49%|
|ETFS Bullish GBP vs G10 Currency Basket Securities||LSE||JE00B3QJ6D65||LGBB LN||0.49%|
|ETFS Bearish USD vs G10 Currency Basket Securities||LSE||JE00B3RMW814||SUSB LN||0.49%|
|ETFS Bullish USD vs G10 Currency Basket Securities||LSE||JE00B3V74640||LUSB LN||0.49%|
|ETFS Bearish EUR vs G10 Currency Basket Securities||Xetra||DE000A12Z3Q6||SEUB LN||0.49%|
|ETFS Bullish EUR vs G10 Currency Basket Securities||Xetra||DE000A12Z3R4||LEUB LN||0.49%|