Assets have doubled for the 15 exchange traded funds (ETFs) that focus on currency. This increase is due to the numerous currency funds hitting the market and the downslide of the dollar against other currencies. Retail investors are using the currency funds for diversification because they’re realizing the risk involved with using only one currency in a portfolio. Investors also pick funds that either take short positions or add leverage to different types of currencies, reports Murray Coleman for MarketWatch. The volatility of currency funds make them ideal for longer-term investments. One of the currency ETFs Rydex offers is Currency Shares Euro Trust (FXE). The 3-month chart illustrates the recent rise.
Read the disclosure, as Tom Lydon is a Board member of Rydex Funds.
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.