Seven innovative exchange traded funds (ETFs) that give exposure to underlying currencies reached the milestone of $1 billion. Rydex Currency Shares ETFs reached this collective asset value in less than one year. Rydex believes this fast and strong rise is due to the attractiveness of currency as an asset class and the convenience of the ETF structure as a delivery mechanism, as stated in the press release.

Rydex introduced the first currency ETF in December 2005, Euro Currency Trust (FXE), which continues to be the most popular of the seven different shares. It has broad country exposure, 12 European nations, longer performance history, and its trading history are all factors.

Investors like being able to take advantage of international interest rate adjustments,and geopolitical issues. Being able to invest in various currencies in a liquid and accessible format is also popular with financial professionals.

Read the disclosure as Tom Lydon is a board member of Rydex Funds.

Tags: Currency ETFs