Topic: How To Invest

I am wondering if CurrencyShares, traded on the New York Stock Exchange, are a good way to invest in currencies. For example, the CurrencyShares Euro Trust has been much weaker than the U.S. dollar lately, and I think it will rebound. Many thanks.

Article Excerpt

CurrencyShares Euro Trust, $122.55, symbol FXE on New York (Shares outstanding: 6.7 million; Market cap: $815.1 million), is one of a number of CurrencyShares exchange-traded funds (ETFs) offered by Maryland-based Rydex. These ETFs rise in value when the U.S. dollar falls, and drop when the U.S. dollar rises. CurrencyShares Euro Trust is designed to track the price of the euro, net of the trust’s expenses, which are paid from interest earned on the deposited euros. After these costs, the shares yield 0.08%. The fund’s MER is 0.40%. Buying one share of this fund is equal to owning 100 euros. Here’s a list of the other eight CurrencyShares ETFs: CurrencyShares British Pound Sterling Trust, $147.88, symbol FXB on New York (Shares outstanding: 750,000; Market cap: $110.9 million), is designed to track the price of the British pound. The shares yield 0.12% after expenses. The fund’s MER is 0.40%. Buying one share of this fund is equal to owning 100 British pounds. CurrencyShares…