Worried about a falling U.S. dollar? With large budget and trade deficits, there are those who worry this scenario could lead to a currency collapse. If you are one of the believers, new exchange-traded funds offer opportunities to protect portfolios from a falling dollar.
iShares Comex Gold Trust (IAU) is an exchange-traded fund that makes it easy for portfolios to invest in gold. Gold helps protect against a falling dollar, since it tends to gain value when paper currencies fall.
Rydex recently introduced an ETF that invests in euros. The Euro Currency Trust (FXE) rises when the dollar falls against the euro and vice versa. This gives investors an opportunity to invest directly in a currency other than the dollar.
For purpose of full disclosure, Tom Lydon serves on the board of Rydex Investments.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Mr. Lydon serves as an independent trustee of certain mutual funds and ETFs that are managed by Guggenheim Investments; however, any opinions or forecasts expressed herein are solely those of Mr. Lydon and not those of Guggenheim Funds, Guggenheim Investments, Guggenheim Specialized Products, LLC or any of their affiliates. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.