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Alt ETFs: Currency Markets

|Includes:FXA, FXE, FXY, PowerShares DB USD Bull ETF (UUP)

Over the past few articles I have talked about alternative ETFs, from the basics to precious then base metals. Metals were chosen first because they have attracted the attention of the ETF world, and captured investors' imagination (as shown by the number of metals-based ETFs near the top of the assets and volume tables). While this is true for ETFs, in the broader investment world, the champion of all investments, alternative or otherwise, is the currency markets.

According to the Bank of England and the New York Fed's most recent survey results in just London and New York (ignoring the rest of the world) the transaction volume was $1.972 trillion per day in London and a mere $977 million daily in New York, dwarfing the stock and bond markets, which themselves dwarf the metals markets. Despite their prevalence in the world financial markets, they are underrepresented in portfolios of U.S. investors.


Stocks: UUP, FXE, FXY, FXA