European Currency

European currency funds and ETFs invest the majority of their assets in... European currency funds and ETFs invest the majority of their assets in European currencies or European 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 versions of these funds, which allow investors to express a bearish view on a particular currency in the region. The most heavily traded European currency is the Euro, followed by the British Pound. 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. Speculators also play a big role in short-term currency fluctuations. As a result, these may be appropriate for an aggressive investor willing to take on a fair amount of risk to achieve higher returns. Last Updated: 01/29/2025 View more View less

European currency funds and ETFs invest the majority of their assets in European currencies or European currency futures contracts. These funds, which tend to be priced in U.S. dollars, are usually passively managed.... European currency funds and ETFs invest the majority of their assets in European currencies or European 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 versions of these funds, which allow investors to express a bearish view on a particular currency in the region. The most heavily traded European currency is the Euro, followed by the British Pound. 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. Speculators also play a big role in short-term currency fluctuations. As a result, these may be appropriate for an aggressive investor willing to take on a fair amount of risk to achieve higher returns. Last Updated: 01/29/2025 View more View less