New launches in the exchange-traded fund (ETF) market are picking up steam. Here's a quick recap of newly introduced funds:
This ETF provides market exposure to the Singapore dollar by holding actual foreign currency deposits, not derivatives or futures contracts.
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.
FXSG's annual expense ratio is 0.40%.
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 ETFs 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 Fund (BOND - News)
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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