Moreover, currency funds could help maintain better stability in a rising rate environment.
“The next wave of problems could be related to rising interest rates and currency funds could be more resilient,” Rodney Wade, president of Wade Financial Advisory, said in the article.
ETF investors can choose from a number of country-specific currency ETFs or hold a diversified currency play. For instance, the PowerShares DB US Dollar Index Bullish Fund (NYSEArca: UUP) provides long USD exposure to the euro, yen, pound sterling, Canadian dollar, krona and franc. On the other hand, something like the PIMCO Foreign Currency Strategy ETF (NYSEArca: FORX) would benefit from a weaker U.S. dollar, investing in currencies from Canada, Norway, Russia, Sweden, Brazil, Mexico, China, New Zealand, Australia, Malaysia, Chile, Switzerland, South Africa, Poland, Singapore, Indonesia and India. [King Dollar Has Hit These Sector ETFs]
For more information on world currencies, visit our currency ETFs category.
Max Chen contributed to this article.