Merk Hard Currency ETF targets 'hard currency'-denominated investments

By Toni Weeks

San Diego, March 21 - Forum ETF Trust announced its plans to offer the Merk Hard Currency ETF, a new exchange-traded fund tied to a basket of "hard currency"-denominated investments relative to the dollar, according to an N-1A filing with the Securities and Exchange Commission.

Hard currencies are defined by Merk Investments, LLC, the ETF's Palo Alto, Calif.-based investment adviser, as currencies of countries that pursue sound monetary policy, or policy that provides an environment fostering long-term price stability, as well as currencies with intrinsic value. Gold qualifies as a hard currency, and the fund may invest in gold either directly or indirectly through exchange-traded products.

The fund seeks to profit from a rise in hard currencies relative to the dollar. Under normal market conditions, it will invest at least 80% of its net assets, plus borrowings for investment purposes, in high-quality, short-term debt instruments, including sovereign debt, gold or ETPs based on gold. The fund may also invest in a combination of dollar-denominated securities and forward currency contracts to gain exposure to foreign hard currencies. The weighted average portfolio maturity will generally be less than 18 months.

Axel Merk is the portfolio manager.

The fund will trade on the NYSE Arca under the symbol "HRD."

Shareholder fees, management fees and operating expenses have not yet been disclosed.

Portland, Maine-based Forum Investment Advisors, LLC is the investment manager.

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