Rydex Launches Japanese Yen ETF

In an effort to offer diversification beyond equities, fixed-income and cash, Rydex has launched another currency ETF - Japanese yen. The CurrencyShares Japanese Yen Trust (FXY) started trading this week, the latest of eight that Rydex offers to advisors. Jesse Emspak of Investor's Business Daily reports that Rydex chose to offer the yen because it's the second most traded currency vs. the dollar and the yen is at a 4 year low now.

Friday it ended trading at 121.67 yen to the dollar. Japanese interest rates are low, with the Bank of Japan rate at 0.25% and 10 year notes at 1.7%. Any rebound in Japan's economy will strengthen the yen but investors could be hurt if there were a large slowdown.

Related: Which Currency ETF is the Best Hedge Against the Dollar?

Read the disclosure, as Tom Lydon is a board member of Rydex Funds.