The first yen-based exchange traded fund, the CurrencyShares Japanese Yen Trust, began trading on the New York Stock Exchange last Tuesday (February 13).
One of eight currency-based ETFs sponsored by Rydex Investments, CurrencyShares Japanese Yen Trust tracks the daily price movement of the yen.
The yen-based ETF joins the family of NYSE-listed CurrencyShares, providing investors with a way to gain exposure to the international currency markets. When paired with the US dollar, the Japanese yen accounts for approximately 17% of global foreign exchange transactions with an average daily turnover of approximately $296 billion.
“Due to its historically low correlation to equities and fixed income, currency as an asset class may offer potential diversification benefits when added to a portfolio,” says Tim Meyer, ETF business manager at Rydex Investments, a Rockville, Maryland-based investment company. “As the firm’s newest currency-based ETF, CurrencyShares Japanese Yen Trust offers an additional way for investors to gain access to this non-correlating asset class.”
The addition of CurrencyShares Japanese Yen Trust brings the NYSE Group’s primary ETF listings to 149, of which eight are Rydex products. In 2006, NYSE Group handled over 43% of all ETF shares traded in the US market.