Currency ETF

Wall Street’s always looking to make money off other peoples’ stupidity. Fortunately, it's in large supply.

With a currency ETF, instead of actually buying a country’s currency or purchasing a foreign nation’s bonds, you can lock yourself into an electronic-traded fund (ETF) and pay management fees for the pleasure of watching currency prices rise and fall.

Currency ETFs are meant to replicate the performance of a single currency, or a basket of currencies. These ETFs give users an opportunity to speculate on the global currency markets without having to purchase futures contracts or dive into the FX market.

Buyers of currency ETFs might do so to hedge against major economic events, or to pretend that they know a lot about the country in whose currency they're investing.