Currency ETF

http://www.cakefinancial.com You may have heard about currency trading, but chances are you haven’t done it. That’s because currency trading is tough for the non-professional investor, since it requires a sophisticated understanding of subtle fluctuations between world currencies. In 2005, however, one investment firm made it a little easier to trade currencies by launching the first currency exchange-traded fund. An exchange-traded fund, ETF for short, is an investment vehicle. Like a mutual fund, it holds assets, such as stocks or bonds. But unlike a mutual fund, it trades on an exchange, like a stock. A currency ETF—and there are many today—is simply an ETF that invests in a currency, such as the U.S. dollar, the euro, the Japanese yen and even the Swedish krona. Why consider a currency ETF? In part because it can be used to hedge against the falling U.S. dollar—which many investors consider an increasing problem. The Best Way to Manage Your Investments. http://www.cakefinancial.com