North American Currency

North American currency funds and ETFs invest the majority of their assets... North American currency funds and ETFs invest the majority of their assets in North American currencies or North American currency futures contracts. These funds, which tend to be priced in U.S. dollars, are usually passively managed. They can be leveraged or unleveraged. There are also inverse North American currency funds and ETFs, which allow investors to express a bearish view on a particular currency in the region. The most commonly traded North American currencies are the U.S Dollar and Canadian Dollar. Currency values are 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 U.S. Dollar is the world’s reserve currency, and often benefits in times of market turmoil. The Canadian Dollar, by contrast, usually does when in times when global economic growth is on the upswing. Speculators also play a big role in short-term currency fluctuations. North American 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: 04/18/2024 View more View less

North American currency funds and ETFs invest the majority of their assets in North American currencies or North American currency futures contracts. These funds, which tend to be priced in U.S. dollars, are... North American currency funds and ETFs invest the majority of their assets in North American currencies or North American currency futures contracts. These funds, which tend to be priced in U.S. dollars, are usually passively managed. They can be leveraged or unleveraged. There are also inverse North American currency funds and ETFs, which allow investors to express a bearish view on a particular currency in the region. The most commonly traded North American currencies are the U.S Dollar and Canadian Dollar. Currency values are 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 U.S. Dollar is the world’s reserve currency, and often benefits in times of market turmoil. The Canadian Dollar, by contrast, usually does when in times when global economic growth is on the upswing. Speculators also play a big role in short-term currency fluctuations. North American 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: 04/18/2024 View more View less