Investor interest in ETFs fizzles out as US dollar rally levels off

New York

SOME of this year's hottest exchange-traded funds (ETFs) are starting to look like a flash in the pan.

When the US dollar's 21 per cent nine-month rally till mid-March was hurting returns for investors in stocks outside the US, ETFs that hedged against declines in other currencies made sense. Now, with an index of the US currency little changed in September, investors directed the least money in almost a year this month into such products.