Whatisetf.com

Currency ETFs allow investors to make money based on the movement of the price of a currency without actually purchasing that currency. Investors may also choose funds that bet against the value of the dollar. Deposits into a currency ETF earn interest at the short-term interest rate provided in the currency’s country of origin. Share values are calculated in dollars, and values move up and down proportional to the changes in currency value. With currency ETFs, investors will both hedge investments in international securities and diversify their portfolios to protect against volatility. Currency ETFs are traded on the stock market.