iShares Plans Active Currency ETFs

ETF Trends

BlackRock’s iShares exchange traded fund unit is venturing into the currency game, looking to launch a suite of actively managed currency ETFs that would provide investors with the opportunity to capitalize on select global currency movements.

According to a SEC filing, the proposed active ETFs include:

  • iShares Australian Dollar Cash Rate Fund
  • iShares British Pound Cash Rate Fund
  • iShares Canadian Dollar Cash Rate Fund
  • iShares Chinese Offshore Renminbi Cash Rate Fund
  • iShares Euro Cash Rate Fund
  • iShares Japanese Yen Cash Rate Fund
  • iShares Mexican Peso Cash Rate Fund
  • iShares New Zealand Dollar Cash Rate Fund
  • iShares Norwegian Krone Cash Rate Fund
  • iShares Singapore Dollar Cash Rate Fund
  • iShares Swedish Krona Cash Rate Fund
  • iShares Swiss Franc Cash Rate Fund
  • iShares Thai Offshore Baht Cash Rate Fund
  • iShares Turkish Lira Cash Rate Fund

No tickers or expense ratios were provided.

The actively managed funds will try to reflect the daily increase or decrease in the exchange rates of their respective currencies against the U.S. dollar, along with the yield generated from the respective currencies.

The funds will hold all of its assets in short-term securities denominated in U.S. dollars and spot foreign exchange currency contracts in an attempt to provide financial exposure equivalent to holding the foreign currency.

Among the proposed currency ETFs, the Mexican peso, Norwegian krone, Singapore dollar, Thai baht and Turkish lira funds will be the only offerings of their kind in the ETF universe.

In the meantime, traders may also browse through currency ETFs to gain exposure to select global currencies:

  • CurrencyShares Australian Dollar Trust (FXA)
  • CurrencyShares Canadian Dollar Trust (FXC)
  • CurrencyShares Swedish Krona Trust (FXS)
  • CurrencyShares Chinese Renminbi Trust (FXCH)
  • CurrencyShares Swiss Franc Trust (FXF)
  • CurrencyShares Euro Trust (FXE)
  • CurrencyShares Japanese Yen Trust (FXY)
  • CurrencyShares British Pound Sterling Trust (FXB)
  • WisdomTree Dreyfus Chinese Yuan Fund (CYB)
  • WisdomTree Dreyfus Brazilian Real Fund (BZF)
  • WisdomTree Dreyfus Indian Rupee Fund (ICN)
  • WisdomTree Dreyfus Japanese Yen Fund (JYF)
  • WisdomTree Dreyfus South African Rand Fund (SZR)

For more information on new product launches, visit our new ETFs category.

Max Chen contributed to this article.

The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Mr. Lydon serves as an independent trustee of certain mutual funds and ETFs that are managed by Guggenheim Investments; however, any opinions or forecasts expressed herein are solely those of Mr. Lydon and not those of Guggenheim Funds, Guggenheim Investments, Guggenheim Specialized Products, LLC or any of their affiliates. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.

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