The Barclays Dynamic GEMS Index methodology is applied to the USD GEMS index and it's regional sub-indices to dynamically adjust the underlying index exposure between directional long, short and neutral. The GEMS indices track the performance of an equally-weighted portfolio of emerging currencies versus the US Dollar, expressed through 1-month cash settled FX forwards.
The positions taken on these currencies are:
- All long or all short positions on the emerging currencies versus the US Dollar for the Dynamic Long/Short ("L/S") GEMS indices.
- All long or all neutral positions on the emerging currencies versus the US Dollar for the Dynamic Long/Neutral ("L/N") GEMS indices.
The positions are determined using the EM FX Risk index designed to track the global risk level on emerging currencies.
The Barclays Dynamic GEMS indices are available in total return ("TR") and excess return ("ER") versions. JPY and EUR versions of Dynamic GEMS indices are also available where the excess return is converted into JPY or EUR respectively and plus a 1-month JPY or EUR money market return.