It may not be clear just yet, but the global economic recovery will eventually return to a healthy pace, and demand for raw materials and commodities will continue to grow.
And since the global economy is increasingly interconnected, that should be good news for growth-oriented currencies, and the exchange traded funds, that trade on them.
It’s unlikely that the Federal Reservewill make any tightening moves in the coming months. If anything, economists are discussing the possibility of further easing moves in the wake of the latest nonfarm payroll report.
Central banks and policymakers around the world have also been taking steps to spur growth. And currency ETFs can be a good way for individual investors to express a point of view on the economy.
Currency ETFs “are investments that in general are not going to be as volatile as stocks or as some of the bond ETFs ,” says Gary Gordon, president of Pacific Park Financial, an investment advisory firm.
While currency ETFs represent just a tiny fraction of the overall ETF market , with only a few dozen funds and less than one-half of 1 percent of the $1.14 trillion in U.S.-listed ETF assets, you do have a variety of choices if your goal is to express a bullish view on the global economy.
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