Forex Blog: Currency Trading News & Analysis.

December 4th 2006

Investors pour into currency funds

As the pace of the USD decline accelerates, many investors are searching for ways to profit, especially in ways that offer limited risk. One such vehicle which has proven to be both popular and relatively riskless is the currency fund. These funds, which are typically structured as either mutual funds or exchange traded funds, have developed different strategies for turning currency volatility into profits. However, many of the funds seem to be tied to the JP Morgan USD index, and have been punished over the last year, with one fund down over 12% in that period. Still, there are several funds which invest in baskets of currencies, and these have fared quite well of late. The Wall Street Journal reports:

Although still a tiny sliver of the mutual-fund marketplace, assets of pure currency open-end mutual funds and ETFs rose to $1.4 Billion heading into November.

Read More: Fund Investors Turn to Currency to Hedge Markets

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Posted by Adam Kritzer | in Investing & Trading, US Dollar | No Comments »

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