Currency ETFs offer investors an easy way to gain exposure to different currencies. These funds can be used for diversification, to speculate on currencies or to hedge your exposure to a particular currency.
Here are some of the best currency ETFs to consider for your portfolio.
What are Currency ETFs?
Currency ETFs are exchange-traded funds designed to track the performance of a single currency or a basket of currencies. Some currency ETFs may be backed by bank deposits in a foreign currency, while others use derivatives to manage their currency exposure.
Currency ETFs can be used to diversify your portfolio, hedge your exposure to a particular currency, or speculate on the movement of a currency. Currencies can move in response to various economic factors, changes in interest rates and geopolitical events.
ETFs in the best currencies
*Data as of April 17, 2024
WisdomTree Bloomberg US Dollar Bullish Fund (USDU)
This ETF seeks a total return before fees that exceeds the performance of the Bloomberg Dollar Total Return Index. The fund offers exposure to the US dollar against a basket of foreign currencies.
- 1 year return: 10.0 percent
- Assets: $206.8 million
- Cost ratio: 0.50 percent
Invesco DB US Dollar Index Bullish Fund (UUP)
This fund is intended for investors who want to track the value of the US dollar against a basket of six major world currencies: the euro, the Japanese yen, the British pound, the Canadian dollar, the Swedish krona and the Swiss franc.
- 1 year return: 11.2 percent
- Assets: $398.8 million
- Cost ratio: 0.75 percent
Invesco CurrencyShares Euro Currency (FXE)
This ETF is designed to track the price of the euro, the currency of twenty countries of the European Union.
- 1 year return: -1.38 percent
- Assets: $186.6 million
- Cost ratio: 0.40 percent
Invesco CurrencyShares Japanese Yen (FXY)
This fund is designed to track the price of the Japanese yen, the national currency of Japan. The Japanese yen is one of the most traded currencies in the world.
- 1 year return: -14.0 percent
- Assets: $356.3 million
- Cost ratio: 0.40 percent
Invesco Currency Shares British Pound Sterling (FXB)
This ETF is designed to track the price of the British Pound. The British pound is the official currency of the United Kingdom, which also includes England, Wales, Scotland and Northern Ireland.
- 1 year return: 3.4 percent
- Assets: $59.8 million
- Cost ratio: 0.40 percent
Invesco CurrencyShares Swiss Franc (FXF)
This fund is designed to track the rate of the Swiss franc, the national currency of Switzerland and Liechtenstein.
- 1 year return: -2.19 percent
- Assets: $151.1 million
- Cost ratio: 0.40 percent
Editorial Disclaimer: All investors are advised to conduct their own independent research into investment strategies before making any investment decision. In addition, investors are advised that the past performance of investment products does not guarantee future price increases.
