EXCHANGE TRADED CURRENCIES
ETF Securities has just launched 10 new currency ETCs which will be listed on the German stock exchange. The new ETCs offer investors long or short exposure to the euro against other G10 currencies, including sterling, the yen, the Swiss franc, the Norwegian krone and the Swedish krona. The sovereign risk problems facing southern European economies such as Greece have weighed on the euro in recent weeks. An ETC is a good way to short the euro against safe haven currencies such as the Swiss franc and the Norwegian krone.
THE SEARCH FOR YIELD
When cash returns on deposit accounts remain low, yield hungry investors should look at Societe Generale’s Synthetic Zero products, which offer a pre-defined yield. You can choose which index or stock you would like to track – either the FTSE 100 or one of 14 of the UK’s most popular equity shares. If, when the product matures, the index or share has not fallen below a certain level you will receive the pre-defined yield, which could be as high as 30 per cent. The yield you receive will depend on the volatility of the FTSE 100 or the individual stock.
NEW CHINA BEAR FUND
For those who don’t believe in the China growth story, then RBS’s China Bear Super Tracker is for you. It will grow in value as the Chinese equity market falls. It also offers accelerated returns: you get 2.7 times downside leverage. The product tracks an ETF, the IShares FTSE/Xinhua China 25 Index Fund. The minimum investment is £100, and the product is exchange listed, so you can buy and sell it like a share. If the FTSE/Xinhua index rises in value you could lose your capital, but the most you can lose is your initial investment.