Sponsored Article by Wisdom Tree Issue 2 August 2008 20080701 PDF Around the world, interest rates in money market-type investments vary widely. But U.S. investors have typically been limited to holding cash investments in U.S. dollars where they could earn U.S. interest rates. Not anymore.
The Pershing Press | Sales Insights and Opportunities for Investment Professionals
Sponsored Article by Wisdom Tree
Issue 2 August 2008

Introducing WisdomTree Dreyfus Currency Income Exchange Traded Funds

Around the world, interest rates in money market-type investments vary widely. But U.S. investors have typically been limited to holding cash investments in U.S. dollars—where they could earn U.S. interest rates. Not anymore.

Why Currency Income ETFs?
  • Give your clients access to higher-yield potential around the globe. By investing in non-U.S. money market securities and other investments, the funds are designed to provide exposure to non-U.S. money market rates available to U.S. investors. Global money market rates differ dramatically depending on various factors, including underlying economic fundamentals and confidence in monetary policy. Attractive real rates tend to be related with positive near-term currency strength and are often the result of economic growth and monetary stability. Investing in securities that provide exposure to foreign money markets with high real yields can add yield enhancement to a U.S.-based portfolio.
  • Your clients can diversify with no correlated assets. Foreign money market securities have historically exhibited low correlations to many asset classes. Incorporating exposure to foreign money markets within a portfolio may reduce the overall dollar volatility of the portfolio.
  • Hedge or overlay currency exposure. Investments in foreign money markets can provide useful tools for managing risk, or taking advantage of perceived market opportunities. Unwanted currency risk from other assets can be mitigated at the portfolio level through offsetting exposure to foreign money markets. Incorporating securities that provide exposure to foreign money markets into a portfolio allows for the ability to gain specific currency exposure without assuming the level of company risk entailed in equities.

Visit Pershing’s ETF Center or www.wisdomtree.com/currency to learn more.

The ETFs seek to earn current income reflective of money market rates available to foreign investors in the specified country or region. The funds also seek to provide exposure to changes in the value of a designated non-U.S. currency relative to the U.S. dollar. The funds are classified as Actively Managed ETFs by the Securities and ExchangeCommission. While still maintaining the full transparency of ETFs, the ability for active portfolio management should allow for greater investment flexibility. Although each fund invests in very short-term, investment-grade instruments, the funds are not money market funds and it is not the objective of the funds to maintain a constant share price.

For registered representative use only, not for public viewing or dissemination.

There are risks associated with investing including the possible loss of principal. In addition to the normal risks of investing, foreign investing involves special risks, including the risk of loss from currency fluctuation or political or economic uncertainty. The funds focus investments in specific regions or countries, thereby increasing the impact of events or developments associated with the region or country, which can adversely affect performance. Investments in emerging markets are generally less liquid and less efficient than developed markets. Investments in currency involve additional special risks, such as high credit risk, interest rate fluctuations, derivative investment risk, and the effect of varied economic conditions. As these funds can have a high concentration in some issuers, the funds can be adversely impacted by changes affecting issuers. Unlike typical exchange-traded funds, there are no indexes that the funds attempt to track or replicate. Thus, the ability of the funds to achieve its objectives will depend on the effectiveness of the portfolio manager.

Carefully consider the investment objective, risks, charges, and expenses of the funds before investing. A prospectus, containing this and other important information, is available at www.wisdomtree.com. Read the prospectus carefully before investing.

WisdomTree funds are distributed by ALPS Distributors, Inc. (ADI). ADI is not affiliated with The Dreyfus Corporation, sub-advisor for each fund.

Around the world, interest rates in money market-type investments vary widely. But U.S. investors have typically been limited to holding cash investments in U.S. dollars where they could earn U.S. interest rates. Not anymore. PDF

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