Link 12 Apr Basics of Currency Trading Through ETFs & Forex»

As the ETF market has exploded over the past few years, mutual fund
companies are trying to create every type of ETF that comes to mind. ETFs
have made trading commodities and currencies much easier for the average
trader. Similar to how instruments such as (GLD) and (USO) allowed you to
trade Gold and Oil without having to buy futures, the same is now true with
currency ETFs. There are pure plays on the US Dollar such as the Dollar
Bullish ETF (UUP),
as well as a whole family of Currency Shares funds from
RYDEX investments and WisdomTree that allow you to play the foreign currencies as well.

The major CurrencyShares Currency ETFs which are priced versus the US Dollar include:

CurrencyShares Australian Dollar Trust ETF (FXA)
CurrencyShares British Pound Sterling Trust ETF (FXB)
CurrencyShares Canadian Dollar Trust ETF (FXC)
CurrencyShares Euro Trust ETF (FXE)
CurrencyShares Japanese Yen Trust ETF (FXY)
CurrencyShares Swedish Krona Trust ETF (FXS)
CurrencyShares Swiss Franc Trust ETF (FXF)

All of the CurrencyShares ETFs listed above have active option trading. All of these are also outperforming UUP for 2012, with the exception of Japanese Yen FXY. WisdomTree has moved into some of the smaller currencies in their ETFs, such as:

WisdomTree Dreyfus Brazilian Real Fund (BZF)
WisdomTree Dreyfus Chinese Yuan Fund (CYB)
WisdomTree Dreyfus Emerging Currency Fund (CEW)
WisdomTree Dreyfus Euro Fund (EU)
WisdomTree Dreyfus Indian Rupee Fund (ICN)
WisdomTree Dreyfus Japanese Yen Fund (JYF)
WisdomTree Dreyfus South African Rand Fund (SZR)

Note that all of these WisdomTree ETFs (except for JYF) are also


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