Exchange traded funds are a great way to diversify a portfolio and give the individual investor a chance to gain experience in another asset class.  It’s even handier when they are able to get the investor into a trend that may have already passed them.  One such ETF is the WisdomTree Dreyfus Commodity Currency Fund.  The ETF, which trades under the ticker symbol – CCX – is a simple mixture of investments in currencies that have been deemed commodity currencies.  These can – and do – include the Australian dollar, Brazilian real and South African rand (as well as the Canadian dollar).

A relatively new fund, the exchange traded asset still has room to rise along with the currently running commodity boom – with gold prices remaining above $1,700.00 and crude oil prices not expected to recede anytime soon (by market estimates).  Taking a look back at the fund’s history, the net asset value of the currency fund remained relatively in sync with gold prices, rising by as much as 14% at the peak – before correcting a bit back to its inception price of $25.

Now trading at $21.67, the fund is trading below both its inception price and its 52-week high of $28.66.  All the while futures on gold prices remain at $1,731 – just shy of the $1900 high.  Crude oil prices additionally remain elevated at $98.71 – with some analysts calling for $125 a barrel prices in the coming year.

The supported demand in both gold and oil – as well as other raw materials – is likely to buoy demand for commodity based currencies, like the Australian dollar and Chilean peso (which are both included in CCX) in the long term.  Now, it’s not a sure thing – as with any other investment.  But, for those that are late to the game and still believe that the commodity craze is likely to continue, it’s a great way to invest in the future.

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