Currency Trading ETF

An alternative way to hedge or speculative on forex price movements is to put money into a Currency Trading ETF. This is an Forex exchange traded fund. ETFs are traded on the major stock exchanges around the world and be purchased like stocks.

A NAV (Net Asset Value) of the FX ETF aims to track the price movements of a particular currency pair, for example EUR/USD. As currency rates fluctuate constantly, the price of a currency rate ETF does as well.

A ETF tracking EUR/USD will have gained around 70% over the last seven years, as this pair has consistantly trended up.

Currency ETFs are still fairly new, but they are currency ETFs on USD/JPY (Dollar/Yen) EUR/USD, GBP/USD and many more.

Personally, I think if you know how to use a mainstream retail FX broker, you are better sticking with that. ETFs are generally better suited to people who have no knowledge of trading the underlying market, but wish to take a speculative view.

You can go short on ETFs unlike conventional stock trading.

Nowadays there are also ETFs on many many other instruments including gold, oil, gas, lean hogs, corn, cattle, stock indicies and many many more.