Currency Exchange-Traded Funds

If you want exposure to foreign exchange rates, consider buying a currency exchange-traded fund. These ETFs offer the convenience of tracking a currency without physically owning it or currency futures contracts.

In general, when the U.S. dollar weakens against a foreign currency, the price of the ETF that tracks the corresponding foreign currency will rise. And when the U.S. dollar strengthens, the price of the foreign currency ETF will fall.

Currency ETFs
ETD and Web Site	Symbol	Comment
CurrencyShares Australian Dollar Trust	FXA	Tracks the Australian Dollar.
CurrencyShares British Pound Sterling Trust	FXB	Tracks the British Pound Sterling.
CurrencyShares Canadian Dollar Trust	FXC	Tracks the Canadian Dollar.
CurrencyShares Euro Trust	FXE	Tracks the Euro.
CurrencyShares Japanese Yen Trust	FXY	Tracks the Japanese Yen.
CurrencyShares Mexican Peso Trust	FXM	Tracks the Mexican Peso.
CurrencyShares Swedish Krona Trust	FXS	Tracks the Swedish Krona.
CurrencyShares Swiss Franc Trust	FXY	Tracks the Swiss Franc.
PowerShares DB G10 Currency Harvest	DBV	Based on G10 currencies with highest interest rates.
PowerShares DB US Dollar Index Bearish	UDN	Holds short U.S. Dollar Index (USDX®) futures contracts.*
PowerShares DB US Dollar Index Bullish	UUP	Holds long U.S. Dollar Index (USDX®) futures contracts.*
* U.S. Dollar Index includes the British Pound, Canadian Dollar, Euro, Japanese Yen, Swedish Krona and Swiss Franc.

Related Articles:

Currency Risk Makes Buying and Selling Foreign Stocks Tricky
Exchange-Traded Funds

Posted July 28, 2007.