Exposure to the currency markets through exchange traded funds (ETFs) has been limited to a few funds. Rydex Investments was the first to offer currency ETFs and today, offers eight CurrencyShares tracking major world currencies. Marie Bereens of Investor’s Business Daily reports Deutsche Bank and PowerShares launched two ETFs designed to replicate the performance of going long or short on the U.S. dollar. The funds are the PowerShares U.S. Dollar Index Bullish Fund (UUP) and the PowerShares U.S. Dollar Bearish Fund (UDN) that track the New York Board of Trades U.S. Dollar Index.
This index is the most popular measure of the dollar against other currencies; the Euro has a 58% position; Japanese yen 14%; British pound 12%; Canadian dollar 9%; Swedish krona 9%; Swiss franc 3%.
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.