JPY (Japanese Yen) Currency

JPY (Japanese Yen) currency funds and ETFs invest the majority of their... JPY (Japanese Yen) currency funds and ETFs invest the majority of their assets in Japanese Yen or Japanese Yen futures contracts. These funds, which tend to be priced in U.S. dollars, are usually passively managed. There are also inverse funds, which allow investors to express a bearish view on the Yen. Japanese Yen Currency Funds and ETFs can be leveraged or unleveraged. The Japanese currency’s value vs. the U.S dollar is affected by a number of factors, such as relative interest rates (interest rate differentials among countries), economic growth expectations, commodity prices, budget and trade deficits, and geopolitical tensions. The Yen is also affected by the Bank of Japan’s quantitative easing (QE) program. In the last few decades, the Yen has also been seen by traders and investors as a so-called safe-haven currency. When market volatility has picked up, the Yen has tended to benefit. However, the Yen has depreciated significantly as of late and so this safe-haven status could now be in question. Speculators also play a big role in short-term currency fluctuations. Japanese Yen currency funds and ETFs may be appropriate for an aggressive investor willing to take on a fair amount of risk to achieve higher returns. Last Updated: 12/08/2023 View more View less

JPY (Japanese Yen) currency funds and ETFs invest the majority of their assets in Japanese Yen or Japanese Yen futures contracts. These funds, which tend to be priced in U.S. dollars, are usually... JPY (Japanese Yen) currency funds and ETFs invest the majority of their assets in Japanese Yen or Japanese Yen futures contracts. These funds, which tend to be priced in U.S. dollars, are usually passively managed. There are also inverse funds, which allow investors to express a bearish view on the Yen. Japanese Yen Currency Funds and ETFs can be leveraged or unleveraged. The Japanese currency’s value vs. the U.S dollar is affected by a number of factors, such as relative interest rates (interest rate differentials among countries), economic growth expectations, commodity prices, budget and trade deficits, and geopolitical tensions. The Yen is also affected by the Bank of Japan’s quantitative easing (QE) program. In the last few decades, the Yen has also been seen by traders and investors as a so-called safe-haven currency. When market volatility has picked up, the Yen has tended to benefit. However, the Yen has depreciated significantly as of late and so this safe-haven status could now be in question. Speculators also play a big role in short-term currency fluctuations. Japanese Yen currency funds and ETFs may be appropriate for an aggressive investor willing to take on a fair amount of risk to achieve higher returns. Last Updated: 12/08/2023 View more View less