New launches in the exchange-traded fund (ETF) market are
picking up steam. Here's a quick recap of newly introduced
CurrencyShares Singapore Dollar Trust
This ETF provides market exposure to the Singapore dollar by
holding actual foreign currency deposits, not derivatives or
Singapore, often referred to as the "Switzerland of Asia," is a
major banking center that attracts wealth from across the
Asia-Pacific due to its independence and solid financial balance
sheet. Singapore's GDP grew 4.9% in 2011 and it's one of only
two Asian-Pacific countries to have AAA credit ratings (Australia
is the other) from the major credit rating agencies.
Guggenheim Investments manages FXSG along with the first U.S.
listed currency ETP, the CurrencyShares Euro Trust
FXSG's annual expense ratio is 0.40%.
PIMCO Foreign Currency Strategy Exchange-Traded Fund
This is an actively managed ETF that typically invests at least 80%
of its assets in currencies or bonds denominated in the currencies
of foreign (non-U.S.) countries.
FORX is hardly a pure-play currency ETF. In addition to having
the freedom to invest in fixed income instruments, the fund may
invest up to 10% of its assets in other
and up to 15% in illiquid securities. Additionally, the fund can
engage in short sales and even buy small capitalization and
mid-capitalization companies. In many ways, FORX has a liberal
investment policy, much like PIMCO Total Return Exchange-Traded
The "Foreign Currency Strategy" in the Fund's name refers to the
Fund's proprietary investment strategy of seeking exposure to
foreign (non-U.S.) currencies likely to outperform the U.S. dollar
over the long-term.
FORX's portfolio is managed by a team that includes Scott
Mather, Vineer Bhansali and Thomas Kressin. Mr. Mather and Dr.
Bhansali are both Managing Directors of PIMCO.
FORX charges annual expenses of 0.65%.
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