Currency fundsters are leaving behind the woes of the dollar and the yen for the greener pastures of emerging markets, The Wall Street Journal reports
Emerging-market debt funds, which typically offer currency exposure through holdings of short-term government, or sovereign, bonds, have reportedly almost doubled their assets in the past year to $50 billion, according to data from Morningstar
. Specifically, assets in the WisdomTree Dreyfus Emerging Currency Fund ETF[see profile]
have reportedly almost doubled in the past six months to some $600 million.
To be sure, emerging market currency offerings are holding their own in terms of performance. For example, the WisdomTree Dreyfus Brazilian Real Fund ETF
has reportedly returned some 20 percent in the past year and the Lord Abbett Emerging Markets Currency Fund[see profile]
, which has more than 30 percent of its assets in the Mexican peso, the Singaporean dollar and the Polish zloty, is up 11 percent during the same period.
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