Pimco's Currency ETF

Pimco is launching a currency ETF. Here is a summary of what it is all about:

PIMCO plans to launch an active currency ETF designed for investors who want to protect against a devalued U.S. dollar with the bond giant’s expertise in global markets.
The ETF will invest in foreign currencies and is expected to list on the NYSE Arca on Tuesday with the ticker FORX. The fund will charge a management fee of 0.65%, according to the prospectus.

It will be called PIMCO Foreign Currency Strategy ETF. PIMCO is putting the ETF together for investors who want to diversify with currencies if the U.S. dollar depreciates, said Don Suskind, head of global ETF product management, in a telephone interview Monday.

I must admit I am a huge fan of Bill Gross and Mohamed El-Erian. I read everything those pairs write. My image of Pimco had always been an intellectually vigorous firm who at least thought to offer products that serve the long term interest of investors. But a currency ETF seem to cater to the basest instinct of their customers. Currency trading is a zero sum game in a frictionless world. Subtracting the cost of procuring currency contracts, Pimco's management fees and the commission from your favorite discount brokers, investors are asked to play a negative sum game. With that in mind, may I so boldly predict that the overwhelming majority of FORX purchasers will end up losing money. And I don't think that is in the long term interest of investors.

In the world of fund management, ETF is where the money is. If Willie Sutton, a mere bank robber can see it, surely an intellectually vigorous firm like Pimco, can too.