Are currency ETFs good for day traders?
Currency ETFs work for anyone, and many different types of investors use them. Pensions, institutions, retirees and investors experienced and novice have owned them at various points and used them to good effect. 4. Why would I want to own currency ETFs? Currency ETFs are a great way to easily play trends in the currency markets, which seem especially lively these days in light of the world’s currency wars. In the United States, a weakened dollar may become weaker in light of the Federal Reserve’s monetary policies, so currency ETFs can be a way to protect your purchasing power. [Play the Currency Wars With ETFs.] Another reason to consider currency ETFs is that the have the potential to generate yield (though not always). The Australian dollar is one of the world’s highest-yielding currencies, and CurrencyShares Australian Dollar Trust (NYSEArca: FXA) is yielding a nice 3.60% – far better than the average money market. For more stories about currency ETFs, stop by our category. To fin
