Yen ETF
Definition of 'Yen ETF'Exchange-traded funds that invest primarily in yen-backed assets such as short-term debt instruments and bonds, or hold the currency in simple interest-bearing accounts that pay the current money market yields in Japan. Some Yen ETFs will match (with a dividend yield) the current income earned on the yen assets, or may use that income to pay the expenses of managing the ETF. |
|
Investopedia explains 'Yen ETF'Unlike basic money market funds, Yen ETFs do not seek to maintain share price stability (as in $1 per share); performance is primarily driven by the performance of the Japanese yen compared to the the U.S. dollar.The Japanese yen is one of the most traded currencies in the world, along with the dollar and the euro. Japan's historically low interest rates make it a sought after currency for borrowing, but the borrowed funds are often used to invest in foreign securities and debt. |
|
Related Definitions
Articles Of Interest
-
Commodity Prices And Currency Movements
Find out which currencies are most affected by fluctuations in gold and oil prices, and improve your trading. -
How are international exchange rates set?
International currency exchange rates display how much one unit of a currency can be exchanged for another currency. Currency exchange rates can be floating, in which case they change continually ... -
Profit From Forex With Currency ETFs
There's always a bull market somewhere - and now you can find it with currency ETFs. -
An Introduction To Exchange-Traded Funds (ETFs)
Exchange-traded funds (ETFs) offer investors the ability to diversify over an entire sector or market segment in a single investment. Find out how they are created and what they can do for your ... -
Who's in charge of managing exchange-traded funds?
An exchange-traded fund (ETF) is a security that tracks an index but has the flexibility of trading like a stock. Just like an index fund, an ETF represents a basket of stocks that reflects an ... -
Exchange-Traded Funds (ETFs)
This vehicle combines the diversification of a mutual fund with the flexibility of a stock. Learn more about them here. -
Multi-Asset Funds Or Your Own Mix?
The underlying concept of mixed funds is very appealing. Discover if you're better off with professional management or creating a mixed fund of your own. -
The Best ETFs For Your 401k
ETFs can be a good alternative to traditional retirement fund options because of their low cost, superior performance and liquidity. -
Why You Should Invest In Municipal Bond ETFs
These versatile instruments have become popular with investors in higher tax brackets and fill a specific niche in the wide selection of fixed-income offerings. -
The Best Way To Buy Silver
Discover whether ETFs or physical bullion is the best way for investors to get exposure to silver.
Free Annual Reports