Asian currency etfsGood etf securities for your etf portfolioAsian currency etfs are one option how to invest into Asia. These currency etf shares offer another way how to buy Asian currencies without need to trade directly on forex markets.Asian currencies are not also easily available to trade. So using of Asian currency etf shares make them much accessible. What are reasons to use Asian currency ETFs ?Asian currencies are popular global macro investment idea today (2011). Asia is region which enjoy nice growth in time when economies of developed markets are under pressure. Global macro research I use identify them as good source of profit based on future appreciation of these currencies.As I mentioned above it is also hard to buy these currencies on currency markets. Their liquidity is not huge and most of them are not freely tradeable. A lot of Asian countries manage their currencies and do not allow free floating of their exchange rate. Some of them are fixed to USD. Asian currency ETF listThere are two possibilities . One is to use broad based multi currency ETF AYT. This ETF include these eight Asian market currencies, the Indonesian rupiah, the Indian rupee, the Philippine peso, the South Korean won, the Thai baht, the Malaysian ringgit, the Taiwanese dollar and the Chinese yuan. There is not possible to buy directly these currencies on free market so this currency ETF is good choice for broad based Asian strategies.
Chinese Renmimbi currencyshares: CNY – Market Vectors Chinese Renminbi / USD ETF
Indian Rupee currencyshares INR – Market Vectors Indian Rupee / USD ETN
Risk with Asian currency fundsThere is also risk associated with these currency ETF shares. As I mentioned Asian countries heavily manage exchange rates of their currencies. Even my Global macro opinion is that they need to revalue them, the opposite could happen.There is possible that local governments will act under some stress and they will decide to devalue their currencies against USD. Such action could produce losses in any position based on Asian currency ETF shares. So it is prudent to use good risk management rules in trading plan for your etf portfolio. Technical analysis of stock charts should has also its role in this decision making process. Return from Currency etfs back to ETF Trading |
Follow me on...
How to Select the Best Stocks & ETFs
I personally use very simple method How to Select the Best Stocks & ETFs for my trading. It is not rocket science to find really good stock pick and make money trading best stock or ETF pick.
Stock trading software reviews
What is best stock analysis and stock trade software? I have tested several stock trade software packages and I've selected AMIBROKER as my preferred stock chart software.
Stock trading journal
Every profitable trader should keep stock trading journal. I personally use these two solutions Both are very useful stock trading journals and help me to reach my profit goals.