PowerShares DB G10 Currency Harvest Fund (DBV)
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- All Comments on DBV
- General Discussion on DBV
- Monetary Madness: Global Margin Call Underway [view article]
- The Great Dollar Pump of 2008: A Doomed Central Bank Intervention [view article]
- Currency ETFs: Consider the Commissions [view article]
- 8 Ways to Profit if OPEC Dumps the Dollar [view article]
- The Rules of the Game Have Changed [view article]
- Keiser: US Dollar 'Backed by Bananas' [view article]
- Top 10 Currency Trading Tips From Deutsche Bank [view article]
- The New Currency ETFs Add Little For Investors [view article]
- Whither the Dollar? Currency Trends and ETFs [view article]
- The $64 Trillion Question: What's the Dollar Really Worth? [view article]
- The Complete List of Currency ETFs [view article]
- Dollar's Fortunes Should Boost U.S. Economy [view article]
loading ...Recent DBV Articles
- Monetary Madness: Global Margin Call Underway
- Currency ETFs Shine Through Bleak Market
- Keiser: US Dollar 'Backed by Bananas'
- The Rules of the Game Have Changed
- Whither the Dollar? Currency Trends and ETFs
- Dollar Rally Is a Fake - Stick to Healthcare and Oil
- Weekly Market Outlook: Sept. 8 - 12
- Dollar's Fortunes Should Boost U.S. Economy
- The Great Dollar Pump of 2008: A Doomed Central Bank Intervention
- The $64 Trillion Question: What's the Dollar Really Worth?
- Full List of Articles »
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Currency ETFs: Consider the Commissions [view article]
I can think of several important reasons to favor the ETF or ETN format to that of a currency broker. First, an exchange traded product does not require the buyer to short a currency. While you are using dollars, for example, you don't have to short them. Shorting half of a pair doubles the risk for an investor, and for the carry trade, the buyer prefers that the two currencies remain constant so the interest earnings can be fully enjoyed.Secondly, on pairs that are not the big six, the spread with a broker is huge. Try buying the Mexican peso (which you have to buy paired with a shorted dollar) from a broker. The spreads are over a hundred times that of the $/Euro. Also, most of the forex trading platforms I checked out do not have more than 30 or 40 pairs, and fully a third of the pairs are denominated in either dollars, euros or yen.
Thirdly, if one opens a forex account the account must be funded. That means selling some of your other assets and paying taxes on the gains--which may be inconvenient at the time. This is especially bothersome if you have your money in a tax protected account. In that case, you must jump through a number of hoops just to get your hands on your money, and you may lose some of the principle because of early withdrawal.
I am not putting down forex trading--although I do not engage in it myself. I am advocating a less frenetic way of investing in currencies, either carry trade or value investing, without having to devote your entire life to learning forex trading--and you must admit it is a lot to learn (assuming you want to be successful--and even then, the odds are against you).
Finally, you can get various bundles of currencies in exchange traded products, which would be difficult to duplicate in a forex account. Diversity is much easier to achieve in the ETF, ETN products. There are some exceptions, I see lately, coming from the forex brokers. I am glad to see them begin offering bundles or other strategy accounts that make forex investing more accessible to ordinary investors.
For traders I can see the advantage of a forex account. But for a more casual investor, who still wants to participate in the benefits that currencies bring to a portfolio, I think an exchange traded product is a good way to proceed. Of course, this is just an opinion, and I may be entirely wrong.
Best wishes,
Ray
Reply
FOMC August 5 Minutes Review: Inflation Debate Rages [view article]
So... the Fed *might* decide at some unnanounced time in the future to raise interest rates from 2% (which would be NEGATIVE 7% measured using the pre-Clinton era CPI) to a whopping 2.25%. www.shadowstats.com/Whoopeeee!! Break out the champagne, wage earners! Your purchasing power and savings may get a marginally smaller ass-whooping next year! Time to partaay... Reply
Growth
Investor
Currency ETFs: Consider the Commissions [view article]
Ray,Thanks for your input. Commission free brokerages like Zecco and BAC are something I should have mentioned.
Another problem however is that you are still paying 0.35%-.55% annually which would lead to you undeperforming the underlying over a 10, 20 year period. So if you really want to invest in currencies, wouldn't it be easier to just open a forex account?
Just my 2 cents Reply
Currency ETFs: Consider the Commissions [view article]
For accounts that allow free ETF trades, see: seekingalpha.com/artic...Reply
Weekly Market Outlook: August 25 - August 29 [view article]
max bidyes we do contact us and I can elaborate on open positions in futures and options 888-920-9997 or trader@mbwealth.com
Matt Reply
Weekly Market Outlook: August 25 - August 29 [view article]
Do you currently have any investments (long/short, puts/calls) in any commodities? ReplyETF Update: Pharma ETFs, Commodity ETFs, Carry Trade [view article]
Greetings,You have repeated Hougan's error. DBV is leveraged 2:1. The prospectus probably should be read by "professionals.&q...
Cheers from Osaka,
John Reply
ETF Update: Pharma ETFs, Commodity ETFs, Carry Trade [view article]
Good to know the different tax rates applied to various ETFs. Suggest you do one exclusively on this topic. Also, the phrase "earning 28% capital gain rate" is misleading. ReplyETF Update: Pharma ETFs, Commodity ETFs, Carry Trade [view article]
I wouldn't bank on long term growth here. ReplyCommodities Correction: Painful but Healthy [view article]
Government spending will increase in infrastructure as a means of creating jobs, both in the U.S. and China. This is positive for commoditites. ReplyCommodities Correction: Painful but Healthy [view article]
Yes Paul is right. We are in a correction of the commodity sell off. As prices go back up its time to sell commodities (they fell so fast that many didnt have time to get out). The turn in the 8 year bull has a long way to go. I will continue to short. As world growth slows, the last thing we need is commodities. ReplyEye on Currency Impact and ETFs [view article]
I wonder why volume is so low on the China currency cny and cyb symbols . ReplyCommodities Correction: Painful but Healthy [view article]
Maybe Paul is on to something - instead of charting and technical analysis, perhaps we should start praying to the animal spirits, building animistic totems in our living rooms, etc. Then again, probably not. ReplyCommodities Correction: Painful but Healthy [view article]
Paul, The so-called bear is starting to back away. That's called fundamentals. miki ReplyJackson
Currency ETFs and ETNs [view article]
Thank you! We've updated the list to include:Market Vectors Double Long Euro ETN (URR)
Market Vectors Double Short Euro ETN (DRR) Reply