With more than $4 billion in assets since late 2005, approximately 60% of the funds assets are held by retail investors, with the rest in institutional accounts.
Investors can choose ETFs pegged to the euro, Canadian dollar, Japanese yen, Mexican peso, Swedish krona, Swiss franc, Australian dollar and British pound.
The days of invincible dollar domination are over, said Daniel McCabe, CEO of Next Investments, the group that created the funds. There is a strong demand by both retail and institutional investors for vehicles that provide an efficient and cost-effective exposure to competitive currencies.
Investing in foreign currency is not a short play against the U.S. dollar but rather a vote of confidence in world markets, McCabe said. You have tremendous spending power and economic growth generated outside the U.S. today, and much of that eventually finds its way back into the American economy in the form of U.S. export revenue, tourism and direct investment in U.S. securities and companies. International currency investing reflects the economic dynamism occurring globally."