How ETF Investors May Profit From Currency Devaluation
Understanding the struggles of the loonie (Canadian dollar) early on might keep one from jumping into the unhedged iShares MSCI Canada Fund (EWC). This fund is only up 3.1% over 3 months, while SPDR S&P 500 is up 5.0%, Vanguard Emerging Markets is up 7.9% and the unhedged iShares MSCI Australia Fund (EWA) is up 9.2%.
Again, while currencies cannot tell you everything, it is hardly shocking to see EWA atop a 3-month leader-board. CurrencyShares Australian Dollar (FXA) has remained above its 100-day for over six months.
Understanding which currencies are rising and which are being devalued can help one identify the best hedged and unhedged stock funds to buy or sell.
At the time of publication the author had no position in any of the stocks mentioned. Follow @ETFexpert This article was written by an independent contributor, separate from TheStreet's regular news coverage.
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts