I have mentioned the currency OEFs from ProFunds several times in the past. There is the Rising US Dollar Fund (RDPIX) and Falling US Dollar Fund (FDPIX).
There is an article by Tim Middleton at MSN this morning that talks about these two but also mentions two new (to me anyway) currency funds from Rydex; Rydex Strengthening Dollar (RYSBX) and Rydex Weakening Dollar (RYWBX). The Rydex funds are leveraged to double the effect. So if the dollar falls by 5% you could expect RYWBX to fall about 10% (there is usually a tracking error that makes exactly double unlikely).
If someone feels they need this type of product I would go with the Rydex because it is a more efficient hedge.
I think these are great in that they represent innovation. I don't have plans to use these now but that may change.
What I would like to see next is these funds in ETF form. I would also like to see currency OEFs/ETFs that measure the US dollar vs the commodity currencies (Aus, NZ, South Africa, Canada, Norway and maybe a couple of others) and one that measures the dollar against emerging market currencies too.
Wikinvest Wire
1 comments:
"So if the dollar falls by 5% you could expect RYWBX to fall about 10%".
I think you meant to say RYWBX would gain 10%
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