CEW tracks the change of money market rates and currency value of select emerging-market countries relative to the US dollar. The most liquid currencies within Latin America, Europe, Middle East and Africa, and Asia are selected at each annual assessment day limited to 55% at each assessment and quarterly rebalance. The fund equally weights its basket of emerging market currencies in terms of USD value, a contrast to trade-weighted benchmarks. It is an interesting approach, but it also makes for some massive bets relative to a neutral position. The fund will provide emerging market exposure by investing in short-term US money market securities and derivatives such as forward currency contracts and swaps of the constituent currencies, thus, the fund may deviate significantly from spot prices in the actual currencies.
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