News - ETFs
Categories: ETFs
Tags:Currency| Etf securities
ETF Securities (ETFS) has created an exchange-traded currency platform, with 18 currency ETCs due to commence trading next week.
The initial range will be listed on the London Stock Exchange, and tracks Morgan Stanley Foreign Exchange indices designed to replicate a fully collateralised long or short investment in one of the G10 currencies against the US dollar.
The G10 currencies include the Australian dollar, Canadian dollar, Swiss franc, euro, British pound, Norwegian Krone, Japanese Yen, Swedish Krona and New Zealand dollar.
The products also offer exposure to local interest rates, as well as the FX movements between the respective currency and US dollar. The ETCs are fully collateralised, to mitigate counterparty risk.
ETFS says returns from most major currencies versus the US dollar have outperformed equities, bonds and real estate, with lower volatility. For example, the provider says the MSFX Long Aud index outperformed UK equities by 13.4, 55.4 and 37.2 percentage points over one, three and five years respectively.
ETFS chief operating officer Nik Bienkowski says: "Currencies are the most liquid class available while currency ETCs also provide access to local interest rates, which have averaged around 5% per annum over the past five years in the case of the Australian dollar."
The provider claims the currency platform is Europe's first such platform and represents the largest in the world.
Categories: ETFs
Tags: Currency| Etf securities
Comments
Related articles
Audio/Video
Related Media
Job search
Adviser Careers will open the right investment career path for you. Search hundreds of vacancies on www.advisercareers.com now
In Focus
The double ISA allowance opportunity for clients is here and, at Investec Structured Products, we offer the facility to invest in our plans over both the 2009/2010 and 2010/2011 tax years through one application form.
Viewpoints
Here at Zurich, we know you have a choice as to where you place your protection business. There are a number of providers who will offer you products at a low cost - indeed we understand this and whilst we’re not always the cheapest, we do believe we offer a proposition which should be compelling overall.
There are no comments submitted yet. Do you have an interesting opinion? Then be the first to post a comment