CAD (Canadian Dollar) Currency

CAD (Canadian Dollar) currency funds and ETFs invest the majority of their... CAD (Canadian Dollar) currency funds and ETFs invest the majority of their assets in the Canadian Dollar or Canadian Dollar 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 Canadian Dollar. These funds can be leveraged or unleveraged. The Canadian Dollar’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 Canadian Dollar’s value is especially tied to movements in commodity prices given that Canada is a big exporter of raw materials. Speculators also play a big role in short-term currency fluctuations. Canadian Dollar 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: 12/26/2024 View more View less

CAD (Canadian Dollar) currency funds and ETFs invest the majority of their assets in the Canadian Dollar or Canadian Dollar futures contracts. These funds, which tend to be priced in U.S. dollars, are... CAD (Canadian Dollar) currency funds and ETFs invest the majority of their assets in the Canadian Dollar or Canadian Dollar 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 Canadian Dollar. These funds can be leveraged or unleveraged. The Canadian Dollar’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 Canadian Dollar’s value is especially tied to movements in commodity prices given that Canada is a big exporter of raw materials. Speculators also play a big role in short-term currency fluctuations. Canadian Dollar 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: 12/26/2024 View more View less