Inside The Not-So-Simple Currency ETFs

While the majority of the nearly $800 billion in ETF assets is found in equity funds, it is other corners of the market that have accounted for the significant cash inflows and asset growth exhibited in recent years. Fixed income and commodity funds have been particularly hot, taking in more than $25 billion in aggregate during the first six months of 2010 [also see Top Performing Currency ETFs From The First Half Of The Year]. Currency ETFs haven’t experienced nearly the same level of popularity as have bond and commodity funds, but have nevertheless seen huge growth over the last year despite significant outflows in the first half of 2010. At the end of June, currency ETF assets stood at $5.3 billion, an increase of more than 42% from the same period a year earlier. In an environment where correlations between most major asset classes–stocks, bonds, commodities, and real estate–has shot [...] Click here to read the original article on ETFdb.com. Related Stories: Currency Carry Trade ETFs Head To Head: DBV vs. ICI WisdomTree Launches Emerging Currency ETF WisdomTree Plans Active Currency ETFs