Products
Rydex Hopes Investors Have a Yen for a New ETF
Shares of the first yen-based exchange traded fund (ETF) have begun trading on the New York Stock Exchange.
Reported by Nevin E. Adams
According to Rydex Investments, the firm’s new CurrencyShares Japanese Yen Trust (ticker: FXY) tracks the daily price movement of its underlying currency, with shares of the trust representing approximately 10,000 yen.
One of eight currency-based ETFs sponsored by Rydex, CurrencyShares Japanese Yen Trust seeks to provide investors with a convenient and cost-effective way to gain exposure to the currency markets, according to a press release.
Along with the potential diversification benefits of currency as an asset class, the yen-based ETF provides investors with exposure to one of the world’s leading currencies. The Japanese yen, when paired with the U.S. dollar, accounts for approximately 17% of global foreign exchange transactions with an average daily turnover of approximately $296 billion.
Joining the Family
The launch of CurrencyShares Japanese Yen Trust complements Rydex’s existing lineup of currency-based ETFs, which have collectively garnered more than $1 billion in assets in less than a year, according to the firm.
The Bank of New York (NYSE: BK) is the trustee of the trust and JPMorgan Worldwide Securities Services (NYSE: JPM) is the depository for the trust.
More information is available at http://www.rydexfunds.com/pdf/FXY-Prosp.pdf