Bringing you live news and features since 2006 

Currency ETC assets rise to USD49m


ETF Securities has seen assets in its exchange-traded currencies platform grow to USD49m since inception in November 2009 with weekly trading volumes continuing their growth, up 240 per cent since the start of 2010.

Currency ETCs which are long USD and short G10 currencies have seen the most interest from investors, making up 81 per cent of assets.

The interest has occurred as the USD strengthened 6.7 per cent versus the Dollar Index since the recent low on 25 November 2009 to 29 January 2010.

ETFS Short EUR Long USD has been the most popular trade in 2010, capturing 50 per cent of new assets, while the Australian dollar held the most net long positions.

The platform has seen continuous increases in turnover since inception. Eighty per cent of trading volumes have occurred in ETCs which are long USD and short G10 currencies, with ETFS Short EUR Long USD taking 21 per cent share of trading volumes, followed by ETFS Short AUD Long USD and ETFS Short GBP Long USD with 18 per cent each.

Martin Arnold, senior analyst, ETF Securities, says: “Sentiment in the foreign exchange market has changed dramatically over the past week as investors increasingly question whether the strong price performance of risk assets in 2009 can be sustained in 2010. The Eurozone is firmly in the spotlight for FX investors, with Greece’s debt problems weighing heavily on the Euro. Monetary tightening in China and India has also been a catalyst for increasing risk aversion. The market pessimism has pushed currency volatilities higher in recent days, and it should come as no surprise that the highest yielding currencies are also under pressure.”

Currency ETCs which were long USD (except for Japanese Yen) performed best as the USD strengthened.

Over the last 12 months, long versions of the higher yielding G10 currency indices were in the top five performers such as the Australian Dollar and New Zealand Dollar.

Latest News

Morningstar has published a review of the European ETF market for the first quarter 2024, which finds that it gathered..
ETF data consultant ETFGI reports that assets invested in the global ETF industry reached a new record of USD12.71 trillion..
Calastone has published an ETF white paper which examines several of the processes that take place across the lifecycle of..
Adapting product lines to fit into changing methodologies and meet shifting demand is essential to remaining relevant in the industry..

Related Articles

US ETF issuers of active ETFs are facing an increase in fees from the big custodian firms, such as Charles...
Taylor Krystkowiak, Themes ETFs
Themes ETFs opened its doors in December 2023, with an introductory suite of 11 ETFs – seven thematic and four...
Konrad Sippel, Solactive
At the end of March, financial index specialist, Solactive, published its 2024 annual report on future trends.  ...
Lorraine Sereyjol-Garros, BNP Paribas
Following changes to the French Monetary and Financial Code and of the French market authority AMF’s General Regulation, it is...
Subscribe to the ETF Express newsletter

Subscribe for access to our weekly newsletter, newsletter archive, updates on the site and exclusive email content.

Marketing by