By A.I. Miguel
Whether your objective is to hedge US dollar inflation, diversification of monetary units, or speculation, the only way to trade foreign currencies in the past was via the futures market. Without getting into the reasons why, this route was inappropriate for many. Today, with the advent of the exchange traded fund (ETF), this avenue is open to practically everyone. These securities trade just like a stock. All you need is an account at a discount stock broker. Below is a list of various currency ETF’s, along with their respective sponsors.
Name, Symbol:
CurrencyShares Australian Dollar Trust FXA
CurrencyShares British Pound Sterling Trust FXB
CurrencyShares Canadian Dollar Trust FXC
CurrencyShares Euro Trust FXE
CurrencyShares Japanese Yen Trust
WisdomTree Dreyfus Chinese Yuan Fund CYB
WisdomTree Dreyfus Brazilian Real Fund BZF
WisdomTree Dreyfus New Zealand Dollar Fund BNZ
WisdomTree Dreyfus South African Rand Fund SZR
WisdomTree Dreyfus Indian Rupee Fund ICN
WisdomTree Dreyfus Euro Fund EU
WisdomTree Dreyfus Japanese Yen Fund JYF
For complete information on CurrencyShares, visit the Rydex Investment’s website at: http://www.currencyshares.com/
For complete information on WisdomTree ETF’s, visit their website at:
http://www.wisdomtree.com/etfs/index.asp
Please note, the author does not recommend the purchase (or short sale) of this or any other asset class, and is in not affiliated with any of the Funds or Sponsors listed above. The sole purpose of this article is to inform the reader about the ability to trade currency interests via the stock market. There is always a degree of risk of loss when trading any asset class. Before making a purchase or sale on any asset, please take the time necessary for thorough research. The degree and form of ownership of a specific commodity varies for each ETF. Make sure that the particular ETF meets your parameters before investing money. Liquidity for ETFs varies. You may obtain more information, including a prospectus, about an ETF from the respective sponsor.