Currency ETF

What are Currency ETFs?

Learn about currency ETFs.

A currency exchange traded fund tracks exchange rate movements, as opposed to index movements. It tracks the performance of the Australian dollar against a foreign currency, for example, against the US dollar.

What is an exchange rate? It is the price of one currency in terms of another. The AUD-USD for example. This exchange rate can be expressed in two ways: the equivalent of one US dollar in Australian dollars, and the equivalent of one Australian dollar in US dollars.

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