Barclays Capital has launched another exchange-traded note that lacks the iPath brand name. The Barclays Asian and Gulf Currency Revaluation ETN (NYSE Arca: PGD) made its debut on Wednesday and joins the Barclays GEMS Index ETN (AMEX: JEM).

The new ETN tracks the Barclays Global Emerging Markets Strategy (GEMS) Pegged Currency Index, which covers five currencies in the Middle East and Asia that are pegged to or float relative to the dollar and which could be revalued. The index currently includes the currencies of Saudi Arabia, Hong Kong, the United Arab Emirates, Singapore and China. JEM, by contrast, just tracks an index that follows the value of U.S. dollar investments in 15 emerging markets currencies.

Why would anyone buy a basket of currencies pegged to the dollar, especially when it costs 0.89%?

Because many expect these currencies to have their pegs adjusted upward, creating a potentially low-risk investment with significant upside in the event of a revaluation.

PGD charges an expense ratio of 0.89%.

Read the prospectus here.