Currency ETF

Loading the player...

DEFINITION of 'Currency ETF'

Exchange-traded funds (ETFs) invested in a single currency or basket of currencies. Currency ETFs aim to replicate movements in currency in the foreign exchange market by holding currencies either directly or through currency-denominated short-term debt instruments.

BREAKING DOWN 'Currency ETF'

Currency ETFs are widely used by investors who wish to gain exposure to the foreign exchange market and would prefer not to enter the futures or forex markets. With the growing popularity of ETFs, investors have found it very easy and relatively inexpensive to trade currency ETFs in order to take advantage of fluctuations between currencies. Currency ETFs can be purchased to track most international currencies including the U.S. and Canadian dollars, the Euro, British pound and Japanese yen.

RELATED TERMS
  1. ETF Of ETFs

    An exchange-traded fund (ETF) that tracks other ETFs rather than ...
  2. Euro ETF

    An exchange-traded fund that invests in the euro currency, either ...
  3. Funding Currency

    The currency being exchanged in a currency carry trade. A funding ...
  4. Quote Currency

    The second currency quoted in a currency pair in forex. In a ...
  5. Reciprocal Currency

    In the foreign exchange market, a currency pair that involves ...
  6. Currency Pair

    The quotation and pricing structure of the currencies traded ...
Related Articles
  1. ETFs & Mutual Funds

    Profit From Forex With Currency ETFs

    There's always a bull market somewhere - and now you can find it with currency ETFs.
  2. ETFs & Mutual Funds

    Beginner's Guide To ETFs And Currency Risk

    ETFs that invest overseas can offer a relatively low-cost vehicle, but there is a risk that should be understood.
  3. ETFs & Mutual Funds

    4 Currency ETFs To Watch Right Now

    The U.S. dollar is breaking out and that means a number of currency ETFs are seeing significant moves right now.
  4. ETFs & Mutual Funds

    Exchange-Traded Funds: ETF Alternative Investments

    Although fixed income and equity investments are the core of a diversified portfolio, the use of alternative asset classes can provide additional diversification. These alternative investments ...
  5. ETFs & Mutual Funds

    Currency ETFs to Date 2016 Performance Review (FXY, FXC)

    Find out how currency exchange-traded funds (ETFs) are performing year-to-date in 2016. Learn which are the best- and worst-performing funds.
  6. ETFs & Mutual Funds

    USDU: WisdomTree Bloomberg US Dllr Bullish ETF

    Explore an analysis of information on the WisdomTree Bloomberg U.S. Dollar Bullish Fund, a currency ETF that tracks the overall performance of the U.S. dollar.
  7. ETFs & Mutual Funds

    Building An All-ETF Portfolio

    Balance is the key when selecting an all-ETF portfolio that will hedge against market volatility.
  8. ETFs & Mutual Funds

    What Is An ETF?

    Exchange-traded funds, or ETFs, are some of the most popular investment products on the market today, despite having been with us for only about 20 years. ETFs have succeeded because they offer ...
  9. ETFs & Mutual Funds

    Trading Opportunities in Currency ETFS

    These currency ETFs are at or nearing critical technical levels. That means trading opportunities in the near future.
  10. ETFs & Mutual Funds

    How To Pick The Best ETF

    Of the hundreds of exchange-traded funds on the market, some are bound to fail. Learn how to pick the best of the bunch.
RELATED FAQS
  1. Is there an ETF composed of other ETFs?

  2. How can I invest in a foreign exchange market?

    The foreign exchange market, also called the currency market or forex (FX), is the world's largest financial market, accounting ... Read Answer >>
  3. What exactly is an ETF portfolio?

    Learn what exchange-traded funds (ETFs) are and their advantages to investors, what a portfolio of ETFs is, and discover ... Read Answer >>
  4. Do ETFs pay capital gains?

    Learn about exchange-traded funds (ETFs), which can generate capital gains for their shareholders due to occasional and substantial ... Read Answer >>
  5. Should I invest in ETFs or index funds?

    Learn advantages to investing in exchange-traded funds, or ETFs, and index funds, and decide whether to include them in your ... Read Answer >>
  6. Why is the U.S. dollar shown on the top of some currency pairs and on the bottom ...

    All currencies are traded in pairs. The first currency in the pair is called the base currency while the second is called ... Read Answer >>
Hot Definitions
  1. Dove

    An economic policy advisor who promotes monetary policies that involve the maintenance of low interest rates, believing that ...
  2. Cyclical Stock

    An equity security whose price is affected by ups and downs in the overall economy. Cyclical stocks typically relate to companies ...
  3. Front Running

    The unethical practice of a broker trading an equity based on information from the analyst department before his or her clients ...
  4. After-Hours Trading - AHT

    Trading after regular trading hours on the major exchanges. The increasing popularity of electronic communication networks ...
  5. Omnibus Account

    An account between two futures merchants (brokers). It involves the transaction of individual accounts which are combined ...
  6. Weighted Average Life - WAL

    The average number of years for which each dollar of unpaid principal on a loan or mortgage remains outstanding. Once calculated, ...
Trading Center