Currency ETFs & ETNs ETF & ETN basically stand for exchange traded funds and exchange traded note. Holding a brokerage account by an investor which enables them to buy and sell stock, makes it very easy for them to exchange U.S. dollars into the currency of a foreign country by buying ETF/ETN which owns a specific foreign currency. ETFs (or ETNs) exist for all the major foreign currencies (e.g., euro, British pound, Japanese yen, Canadian dollar) as well as several other foreign currencies. ETFs/ETNs trade similar to stocks in that you can buy or sell them during the course of the stock trading day. If you buy a currency ETF/ETN (with U.S. dollars) your investment will rise or fall in relation to the exchange rate of that foreign currency with the U.S. dollar. #currency #investment #currencyexchange
Posted on: Tue, 20 Aug 2013 01:30:00 +0000