Pick a currency, any currency, and chances are there’s an exchange traded fund (ETF) or exchange traded note (ETN) to track it.

Well, there are exceptions, but foreign currency exchange traded products are proliferating.

John Spence for MarketWatch reports that currency ETFs and ETNs track unpredictable markets and give investors a chance to hedge the falling value of the dollar or get diversification in their portfolios.

They offer a range of strategies for getting exposure, such as by using futures contracts.

Rydex was the first provider to put out a family of currency ETFs. Since then, providers such as Market Vectors, Barclay’s and WisdomTree have also entered the fray.

• CurrencyShares Australian Dollar Trust (FXA), up 11.2% year-to-date
• WisdomTree Dreyfus Euro Fund (EU), launched May 22
• PowerShares DB G10 Currency Harvest (DBV), down 1.9% year-to-date
• Market Vectors Rupee/USD ETN (INR), down 3.9% year-to-date
• iPath JPY/USD Exchange Rate ETN (JYN), up 6.6% year-to-date

This is just a sample of the variety to choose from.

Currency-related investments are showing strong performance, but this is reliant on many complex economic factors. Be aware of how the fund you choose works and the surrounding issues that concern it.

Foreign currency ETNs were given a hit last year when the IRS took away a key tax advantage of the notes.

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

Tags: Asia, Australia, Currency ETFs, Emerging Markets, ETNs, India, Japan, United Kingdom