International Currency

International currency funds and ETFs invest the majority of their assets in... International currency funds and ETFs invest the majority of their assets in non-North American currencies, either directly, or via financial derivatives. These funds, which tend to be priced in U.S. dollars, are usually passively managed. Some International Currency Funds and ETFs focus on emerging market currencies which are deemed to be candidates for appreciation vs. the U.S. Dollar. International currencies’ 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. Many emerging markets borrow in U.S. Dollars, so a sharply appreciating Dollar can also weigh on these economies and cause further pressure on the local currency. Speculators also play a big role in short-term currency fluctuations. International 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: 01/29/2025 View more View less

International currency funds and ETFs invest the majority of their assets in non-North American currencies, either directly, or via financial derivatives. These funds, which tend to be priced in U.S. dollars, are usually... International currency funds and ETFs invest the majority of their assets in non-North American currencies, either directly, or via financial derivatives. These funds, which tend to be priced in U.S. dollars, are usually passively managed. Some International Currency Funds and ETFs focus on emerging market currencies which are deemed to be candidates for appreciation vs. the U.S. Dollar. International currencies’ 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. Many emerging markets borrow in U.S. Dollars, so a sharply appreciating Dollar can also weigh on these economies and cause further pressure on the local currency. Speculators also play a big role in short-term currency fluctuations. International 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: 01/29/2025 View more View less