Lowell points out the PowerShares DB G10 Currency Harvest ETF (NYSEArca: DBV) as a good way to own a diversified basket of currencies through one instrument. DBV tracks G10 currencies, including the U.S. dollar, euro, Japanese yen, Canadian dollar, Swiss franc, British pound sterling, Australian dollar, New Zealand dollar, Norwegian krone and Swedish krona. The fund also takes a long/short approach, going long currencies with high yields and holding short positions in currencies with low rates.

Going into August, Lowell suggests putting 4.5% in PowerShares Dollar Bull ETF (NYSEArca: UUP), 1.5% in CurrencySHares Japanese Yen (NYSEArca: FXY), 1.5% in CurrencyShares Euro (NYSEArca: FXE), 1.5% in Currency Shares Swiss Franc (NYSEArca: FXF) and 1% in ProShares Short 20-plus Year Treasury (NYSEArca: TBF) as part of a diversified portfolio. [Currency ETFs for Diversification]

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

Max Chen contributed to this article.

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