 The
WisdomTree Emerging Currency Strategy Fund (CEW) is an exchange-traded
fund that invests in a basket of emerging market currencies. It seeks
to provide exposure to the currency markets of emerging economies by
investing in short-term, investment-grade debt denominated in local
currencies. The fund's goal is to generate returns from both currency
appreciation and interest income.
CEW tracks the WisdomTree
Emerging Currency Strategy Index, which is designed to measure the
performance of the currency markets in emerging economies. The index
consists of currency positions selected and weighted based on a
proprietary methodology. The currencies included in the index are the
Chinese yuan, Brazilian real, Indian rupee, South African rand,
Turkish lira, Chilean peso, Colombian peso, Czech koruna, Hungarian
forint, Indonesian rupiah, Mexican peso, Malaysian ringgit, Philippine
peso, Polish zloty, Russian ruble, and Thai baht.
The fund
charges an expense ratio of 0.55% and has approximately $1 billion in
assets under management as of March 2023. It is traded on the NYSE
Arca exchange.
Investors who are interested in gaining exposure
to emerging market currencies may consider CEW as a way to diversify
their portfolio and potentially benefit from the higher returns
associated with these markets. However, investing in emerging markets
can also involve higher risks due to factors such as political
instability, currency fluctuations, and economic volatility. It is
important for investors to carefully consider their investment
objectives, risk tolerance, and investment time horizon before
investing in CEW or any other emerging market funds.
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