Topic: How To Invest

Q: What’s a cheap way for me to profit from any further increases in the Canadian dollar against the U.S. dollar? What about the recent rise for several other widely traded currencies against the U.S. dollar?

Article Excerpt

A: CurrencyShares Canadian Dollar Trust, $78.79, symbol FXC on New York (Shares outstanding: 2.5 million; Market cap: $197.0 million; www.currencyshares.com), is one of a number of CurrencyShares ETFs offered by Guggenheim Partners. These ETFs rise in value when the U.S. dollar falls and drop when the U.S. dollar rises. CurrencyShares Canadian Dollar Trust is designed to track the price of the Canadian dollar. The fund’s MER is 0.40%. Buying one share of this fund is equal to owning 100 Canadian dollars. The Canadian dollar is the sixth most-traded currency in the world, accounting for about 2.6% of global foreign exchange transactions. The USD/Canadian dollar pair is the fourth most-traded currency pair. Here’s a list of the eight other CurrencyShares ETFs that move in relation to the U.S. dollar: CurrencyShares Euro Trust, $114.11, symbol FXE on New York (Shares outstanding: 3.5 million; Market cap: $399.4 million), is designed to track the price of the euro, net of the trust’s expenses, which are paid from interest…