Investors have been focusing on the stronger dollar. While the dollar’s strength is a direct impact of better GDP, it is making U.S. goods expensive for exporting. This week, we have chosen the Columbia Absolute Return Currency and Income Fund (RACWX) as our fund of the week.
Inside the Fund
The fund was launched in 2006 and is managed by Nicholas Pifer. Currently, it has about $52.6 million in assets under management (AUM).
The Columbia Absolute Return Currency and Income Fund is a small fund that has outperformed. Investors should note that this fund can be volatile and is ideal for more aggressive investors.
Historical Performance
| 2010 | 2011 | 2012 | 2013 | 2014 |
|---|---|---|---|---|
| 0.60% | 0.30% | 1.82% | -7.98% | 4.12 |
Below is a three-month chart of RACWX from U.S. News. The chart below highlights the recent concerns surrounding currency volatility worldwide.
The Bottom Line
This fund can be a great way for investors to gain exposure to the stronger dollar. For more information, be sure to check out Beginner’s Guide to Currency Mutual Funds.