How to invest in currency Electronically Traded Funds (ETFs):
With CD and money markets paying so little interest most investors are considering high yielding investments like dividend paying stocks or high yielding ETFs. There are ETFs in almost any investment, index, country, stock, bond, or assets class. ETFs were started to track indexes and reduce fees. You can also invest in commodities ETF.
ETFs are good way for a stock investor to invest in commodities without actually buying the commodities. There are ETFs that hold gold, silver, oil, and natural gas. The symbols are GLD, SLV, OIL, and UNG. These ETFs may be a good bet against inflation if the U.S. continues to spend money. There are currency ETFs that invest in currency. CYN is an ETF that invests in the Chinese Yuan. This ETF may be a good investment considering the Chinese having indicated that they will let their currency rise against the US Dollar. You can invest in ETFs that track the indexes such as the S&P 500 or the Dow.
If you think the market may go lower, then you can also invest in ETFs that short the market or an industry. You can even invest in the dollar UUP or the inverse of the dollar UDN as indicated by the following article:
DOG shorts thirty Dow stocks. FAZ shorts the financials so it should go up if the financials go down. Some ETFs are bear or bull and can track three times the underlying index. I would recommend staying away from these ETFs to begin with because the swings in these ETFs can be quite violent.
ETFs allow you trade in and out of the funds. Most mutual funds discourage an investor from buying and selling the fund. Some even charge redemption fees. The following website provides a blog dedicated to ETFs and lists over 700 ETFs:
If you want to find more information on ETFs here is are some useful links:
If you are interested in ETFs, then you should do your own research to see if it is right investment for you. You should also talk to your broker or investment advisor about ETFs.