Currency ETFs give investors a simple 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 certain currency.
Here are some of the top currency ETFs to consider for your portfolio.
What are currency ETFs?
Currency ETFs are exchange-traded funds that are 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 certain currency, or to speculate on the movement of a currency. Currencies can move in response to various economic factors, changes in interest rates and geopolitical events.
Top currency ETFs
*Data as of April 17, 2024
WisdomTree Bloomberg U.S. Dollar Bullish Fund (USDU)
This ETF aims to provide total returns before expenses that exceed the performance of the Bloomberg Dollar Total Return Index. The fund offers exposure to the U.S. dollar against a basket of foreign currencies.
- 1-year return: 10.0 percent
- Assets: $206.8 million
- Expense ratio: 0.50 percent
Invesco DB US Dollar Index Bullish Fund (UUP)
This fund is designed for investors who want to track the value of the U.S. dollar relative to a basket of six major world currencies: the euro, Japanese yen, British pound, Canadian dollar, Swedish krona and Swiss franc.
- 1-year return: 11.2 percent
- Assets: $398.8 million
- Expense ratio: 0.75 percent
Invesco CurrencyShares Euro Currency (FXE)
This ETF is designed to track the price of the euro, which is the currency for 20 European Union countries.
- 1-year return: -1.38 percent
- Assets: $186.6 million
- Expense 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 among the most widely traded currencies in the world.
- 1-year return: -14.0 percent
- Assets: $356.3 million
- Expense ratio: 0.40 percent
Invesco CurrencyShares British Pound Sterling (FXB)
This ETF is designed to track the price of the British pound sterling. The British pound sterling is the official currency of the United Kingdom, which includes England, Wales, Scotland and Northern Ireland.
- 1-year return: 3.4 percent
- Assets: $59.8 million
- Expense ratio: 0.40 percent
Invesco CurrencyShares Swiss Franc (FXF)
This fund is designed to track the price of the Swiss franc, which is the national currency of Switzerland and Lichtenstein.
- 1-year return: -2.19 percent
- Assets: $151.1 million
- Expense ratio: 0.40 percent
Editorial Disclaimer: All investors are advised to conduct their own independent research into investment strategies before making an investment decision. In addition, investors are advised that past investment product performance is no guarantee of future price appreciation.
