Currency ETFs Offer A Way to Capitalize, But Know What You're Getting | Page 2 of 2 | ETF Trends

ELEMENTS currency exchange traded notes (ETNs) are structured to track the performance of the U.S. dollar vs. the currency named in the fund. For example, if the currency in the fund’s name appreciates relative to the dollar, other things being equal, the value of the fund will increase. Market Vectors currency ETNs give exposure to the exchange rate of foreign currencies.

Note that ETNs differ somewhat from ETFs in their structure as well as tax treatment.

  • WisdomTree Dreyfus Japanese Yen (JYF), down 4.8% since May 22 launch
  • WisdomTree Dreyfus New Zealand Dollar (BNZ), down 5% since July 8 launch
  • CurrencyShares Euro Trust (FXE), up 3.5% year-to-date
  • CurrencyShares Mexican Peso Trust (FXM), up 12.2% year-to-date

  • ELEMENTS Australian Dollar (ADE), down 3.4% since March 4 launch
  • ELEMENTS Canadian Dollar (CUD), down 7.2% since March 18 launch
  • Market Vectors Renminbi/USD (CNY), down 2.1% since March 17 launch
  • Market Vectors Double Long Euro (URR), down 10.7% since May 22 launch
  • PowerShares DB US Dollar Index Bullish (UUP), up 0.2% year-to-date

For full disclosure, some of Tom Lydon’s clients own shares of UUP.

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