Currencies

Why Invest in Currency ETFs?

Overview

Currency ETFs primarily give the individual investor an opportunity to trade the major currency pairs and also take on exposure to be long on the USD against other currencies.

Key factors to consider before investing

  • Domestic/ foreign Inflation and Interest rate changes
  • Geo-Political issues
  • Commodity price changes
  • National debt
  • Trade deficits
  • Government defaults
  • Central banks or other government agencies intervention
  • Among others

Performance

Deutsche Bank Long US Dollar Futures Index

PowerShares DB US Dollar Bullish ETF – UUP

The investment seeks to track the price and yield performance, before fees and expenses, of the Deutsche Bank Long US Dollar Futures index. The index is comprised solely of long futures contracts. The futures contract is designed to replicate the performance of being long the US Dollar against the Euro, Japanese Yen, British Pound, Canadian Dollar, Swedish Krona and Swiss Franc.

UUP
(%)

 

Deutsche Bank Short US Dollar Futures Index

PowerShares DB US Dollar Bearish ETF – UDN

The investment seeks to track the price and yield performance, before fees and expenses, of the Deutsche Bank Short US Dollar Futures Index. The index is comprised solely of short futures contracts. The futures contract is designed to replicate the performance of being short the US Dollar against the Euro, Japanese Yen, British Pound, Canadian Dollar, Swedish Krona and Swiss Franc.

UDN
(%)

 

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