Currency Trading Exchange Traded Funds Reduce Your Investment Risk
Different currencies benefit from some of the same issues that sometimes potentially hurt stock indexes, commodities, or bonds. Currency investments can be a great way to diversify a portfolio. However, digging into currencies as a trader or investor can be daunting.
New currency exchange-traded funds (ETFs) make it simpler to understand the forex trading market, which is the largest, most liquid market on the planet--and use it to diversify risk.
Now, you can have the British Pound and General Electric in your portfolio by holding the CurrencyShares British Pound ETF (FXB) in the same account. Have an IRA? Sprinkle some euros in there by holding the CurrencyShares Euro ETF (FXE) to offset some downside risk of your S&P 500 holdings.
More on currency ETF from Forbes.
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