Other notable currency ETFs include:

  • CurrencyShares Australian Dollar Trust (NYSEArca: FXA)
  • CurrencyShares Canadian Dollar Trust (NYSEArca: FXC)
  • CurrencyShares Mexican Peso Trust (NYSEArca: FXM)
  • CurrencyShares Russian Ruble Trust ETF (NYSEArca: XRU)

The alternative to playing currencies elsewhere is to play the U.S. dollar. PowerShares’ two funds buy and sell futures contracts on the dollar and other major currencies.

  • PowerShares DB U.S. Dollar Index Bullish Fund (NYSEArca: UUP)
  • PowerShares DB U.S. Dollar Index Bearish Fund (NYSEArca: UDN)

Most currency ETFs are considered debt, so interest proceeds are ordinary income. Gains are taxed at ordinary income rates. You should still consult your accountant about the tax implications of currency ETFs.

For more information on currencies, visit our currency ETFs category.

Read the disclaimer; Tom Lydon is a board member of Rydex|SGI.

Max Chen contributed to this article.

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