Stock Questions, Currency ETFs
Thank you for educating me on ETFs. Is it possible to find out if you have any information on long & short currency ETFs?
Yes, currency ETFs do exist and are available for investing. The most popular and liquid currency ETFs available on the market are offered by Rydex Investments. Currency ETFs available include the Australian Dollar (FXA), British Pound (FXB), Canadian Dollar (FXC), Euro (FXE), Japanese Yen (FXY), Mexican Peso (FXM), Swedish Krona (FXS) and Swiss Franc (FXF). Shorts of these ETFs do not currently exist.
As for investing in the US dollar itself the US Dollar Long (UUP) and the US Dollar Short (UDN) are available through Powershares.
About ETFs: An exchange traded fund is a fund publicly traded on an exchange that replicates the performance of an individual index, sector, or group of equities. ETFs typically have lower management fees than mutual funds alongside better liquidity.
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fantastic post, very useful information here.
Interesting to note the market capitilizations of these stocks are pretty small, guess currency ETFs aren’t that popular yet.
not yet. nice post Blain and good explanation.
Thanks guys, Cheers.
nice post, i like looking at these too see currency movements if you are bored as well.
with today’s volatile market sometimes the equities get sold off on a currency weakness
This really never made too much sense to me. Letter X (US Steel) had it’s best quarter when the dollar was the weakest, but sometimes it is just investor panic i guess.
One thing I’d like to point on on currency as well is the Brazilian Real and some ETFs through Wisdom Tree. It looks like they are slowly introducing a bit more, but they are limited in options to the FX? currencies as denoted above.
http://finance.google.com/finance?q=bzf
there is also the US Dollar:
http://finance.google.com/finance?q=uup&hl=en
*note* UDN is the reverse
and
also a 2x US dollar fund:
http://finance.google.com/finance?q=MUTF:RYSBX
per Rydex on above, but watch out for the caution:
ETFs typically have lower management fees than mutual funds alongside better liquidity.
also, just on the above, there is NO currency 2x ETF traded (just the mutual funds with the load expense)
correct me if I’m wrong someone, would LOVE to own a 2x currency ETF (yes I’m an adrenaline junkie)
curriencies are very slow returns, but if you have conviction, they can be very strong, or I guess…..if you really wanted to…..you can play them through options for the adrenaline junkies
options on currency, sounds dangerous to me
. I think the reason there are not ultra ETFs for currencies is due to liquidity, there isn’t a huge market for the standard long and shorts.