ETF Euro Currency
January 11th at 1:49pm by Tom Lydon
A recent review of the Rydex NYSE Euro Currency Shares (FXE) exchange traded fund points out the advantages of using this ETF as an investment tool. Some of the main points of the article include:
- Holds only Euros and generates modest net interest
- Can be used to protect against the Dollar deflation
- Offers a kind of Dollar inflation protection
- One can speculate and make short-term macroeconomic bets in any direction
A good currency strategy would be to consider FXE when the Euros per US Dollar is above the 200-day moving average.
Euros per US Dollar Chart
For full disclosure our clients do not own FXE, but Tom Lydon serves on the board of Rydex Investments.
