As some of you may know, over the last couple of months I have been just dipping a little bit into learning FOREX. I came across this interesting article on investopedia.com about Currency ETFs. I never even knew there was such a thing. You can basically trade currency like you would any ETF or stock.
Now, you can have General Electric (NYSE:GE) and the British pound in your portfolio by holding the CurrencyShares British Pound ETF (PSE:FXB) in the same account. Have an IRA? Sprinkle some euros in there by holding the CurrencyShares Euro ETF (PSE:FXE), and offset some downside risk of your S&P 500 holdings.
The article takes a look at many different ways you could work and play these within your own portfolio. This is definitely worth a look if you are looking at widening your diversity – Currency ETFs Simplify Forex Trades.