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The American Stock Exchange (Amex) announced today that it has launched trading in shares of PowerShares DB G10 Currency Harvest Fund (Ticker: DBV), the first fund linked to an enhanced currency index to be listed on a U.S. stock exchange.
"This new product provides investors a convenient way to diversify their portfolios into an enhanced currency strategy that historically has had low correlation with equities and bonds. The Amex is proud to partner with Deutsche Bank and PowerShares to bring this innovative index fund to the marketplace," said Cliff Weber, Senior Vice President of the ETF Marketplace at the Amex.
DBV offers investors unprecedented transparency and access to an enhanced currency strategy. The new fund tracks the Deutsche Bank G10 Currency Future Harvest Index - Excess Return (DBCFHX). The Index, at any time, is comprised of six of the following G10 currencies: United States Dollars, Euros, Japanese Yen, Canadian Dollars, Swiss Francs, British Pounds, Australian Dollars, New Zealand Dollars, Norwegian Krone and Swedish Krona.
The Index reflects the return from investing long in futures of currencies with relatively high yielding interest rates and short in futures of currencies with relatively low yielding interest rates. This approach is designed to benefit from the trend that on average currencies that trade at a forward discount tend to perform better than those that trade at a forward premium. Chicago Mercantile Exchange listed futures based on the G10 currencies vs. United States Dollars are eligible for inclusion in the Index.
"We are delighted to partner with the Amex to bring DBV to the U.S. marketplace, providing institutional and retail clients unprecedented access to the currency markets," said Kevin Rich, Chief Executive Officer of DB Commodity Services LLC, the managing owner of DBV. "DBV will offer investors easy access to the returns of the currency markets by following a highly-developed index previously available only to very sophisticated investors."
DBV's shares will be listed on the Amex. The specialist for DBV is Susquehanna International Group, LLP.
