As the dollar hits new lows, currency exchange traded funds (ETFs) are getting more attention than ever.
Rydex Investments, home of the CurrencyShares lineup, and the first family of currency ETFs, introduced CurrencyShares the website for information and commentary on Foreign Exchange Analytics (FXA), which is under the "research and tools" option.
The new commentary gives information on the world’s major currencies, representing the largest and most liquid asset class. Currency as an asset class provides investors with diversification benefits and the chance to capitalize on the cyclical nature of currency valuations. Currency tends to follow longer-term trends over time.
Currency ETFs will benefit as long as the dollar continues to drop. Year-to-date, these ETFs are delivering:
- CurrencyShares Euro Trust (FXE), up 6.7%
- CurrencyShares British Pound Sterling Trust (FXB), up 1.9%
- CurrencyShares Swiss Franc Trust (FXF), up 12%
- CurrencyShares Japanese Yen Trust (FXY), up 10.5%
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.