ETF Securities launches five currency basket ETPs

The five products represent the group’s first foray into currency basket ETPs and aim to better provide investors with the ability to hedge their currency risk.

ETF Securities launches five currency basket ETPs

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The five products represent the group’s first foray into currency basket ETPs come on the back of significant growth in interest for currency products, the group said.

Martin Arnold, senior research analyst at ETF Securities told Portfolio Adviser: "Last year we saw $94m in inflows into single currency pair products. In the last six months we have seen in the region of $173m."

According to ETF Securities, four of the five products are classified as tactical currency baskets, and are offered to investors in both a bullish and a bearish version.

“The ETF Securities US Dollar G10 Basket, the ETF Securities Euro G10 Basket and the ETF Securities Pound Sterling Basket are based on a Morgan Stanley index designed to provide a measure of general US$, € and GBP performance against G10 currencies respectively,” it said.

The fourth tactical fund, the ETF Securities Commodity Currency Basket, is also based on a Morgan Stanley index, but one designed to reflect the performance of commodity currencies.
The basket is comprised of the Australian Dollar, the New Zealand Dollar, the Norwegian Kroner and the Canadian Dollar, the ETF-provider said.

The fifth product, the ETF Securities Multi-FX Basket, is based on four separate component strategies, ETF Securities said, that “reflect distinct investment themes within the currency industry”.

“The ETF Securities Multi-FX Basket is based on a Morgan Stanley index designed to identify and capture opportunities for returns across a selection of G10 currencies against the US Dollar,” it said.

““We view this suite of products as a natural progression for our business, which already boasts a strong expertise in currency ETPs. Currency baskets can provide investors with a unique source of return generation by gaining direct access to the key investment themes driving financial markets” Arnold said.

Asked if there 

The products launch on the London Stock Exchange today and will be listed on the Deutsche Boerse on July 14.

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