Market Overview

Five Currency ETFs For Rising Rates And Economies

Share:
Five Currency ETFs For Rising Rates And Economies

Tired of all that deflation/inflation talk? Not feeling compelled to spend your days and nights tied to your computer screen trading forex? If you answered yes to either or both questions, you're in luck because there are plenty of ETFs to help you get involved in the forex game.

That said, a lot of options doesn't mean all choices are good. The thing to do is focus on robust economies that could drive their respective currencies higher. Throw in a decent chance of an interest rate hike or two and you might really be onto something.

Here's the Professor's list of preferred currency ETFs.

1) CurrencyShares Swedish Krona Trust (NYSE: FXS)

The Professor highlighted Sweden's equity ETF on Monday and the thesis here is similar. The Nordic country is home to one of Europe's stronger economies and the icing on the cake is that Sweden doesn't use the Euro.

2) WisdomTree Dreyfus Indian Rupee ETF (NYSE: ICN)

Inflation is the most often cited flaw in discussions about India's economy, but the central bank there knows how to raise rates without sending investors running for cover. Bank a stronger rupee over the medium- to long-term as India combats its inflation woes.

3) WisdomTree Dreyfus Brazilian Real ETF (NYSE: BZF)

Brazil has inflation concerns of its own and it's reasonable to expect more rate hikes are on the way. Some analysts have said Brazilian bonds may be more attractive than stocks in the near-term, making BZF worth a look.

4) WisdomTree Dreyfus Emerging Currency ETF (NYSE: CEW)

Loaded with emerging markets fares like the real, the yuan and the Thai baht, CEW is an ideal way for investors to get exposure to booming economies, many of which are going to be raising interest rates sooner rather than later. CEW could be the best of the lot highlighted here.

5) UltraShort Yen ProShares (NYSE: YCS)

There is just no way Japan can keep going on its current path, which includes a yen that is just too strong. This export-driven economy needs a weaker yen and the Bank of Japan could intervene sooner rather than later. YCS is a double leveraged play on the yen/dollar pair.

Beat the market consistently by receiving real-time trade alerts from the ETF Professor!

Posted-In: Long Ideas Short Ideas Emerging Market ETFs Currency ETFs Forex Pre-Market Outlook Trading Ideas ETFs

 

Related Articles (BZF + CEW)

View Comments and Join the Discussion!

Mad Money Lightning Round: Jim Prefers ERTS To ATVI

11 Aug, Daily Pre-Market Report