By Matthew Hougan
WisdomTree (WSDT.PK) launched its fifth foreign-currency-focused ETF today, as the WisdomTree Dreyfus Japanese Yen fund (NYSE:JYF) debuted on the NYSE Arca.
JYF invests in short-term, investment-grade debt from Japan. It is designed to function essentially as a money market fund offering exposure to the Japanese market. The fund's returns will be driven by both interest income (based on prevailing rates for Japanese short-term debt) and currency fluctuations (based on how well the Japanese yen performs against the dollar).
Last week, WisdomTree launched similar funds tied to the Chinese Yuan (NYSEARCA:CYB), Indian Rupee (NYSEARCA:ICN), Brazilian Real (NYSEARCA:BZF) and Euro (NYSEARCA:EU). It also launched a U.S. money market fund, the WisdomTree U.S. Current Income Fund (USY).
The Japanese fund charges 0.35% in annual expenses. That compares with 0.40% for the Rydex CurrencyShares Japanese Yen Fund (NYSEARCA:FXY), which is currently the most popular ETF offering exposure to the Japanese market.
The prospectus for JYF is available here [PDF file].