The case for currencies as an asset class is a debate that has been gaining more and more (pardon the pun) currency these days. In 2009, currency exchange-traded funds saw inflows of roughly $3.7 billion, not bad considering that as of the end of March there was about $6.2 billion invested across 28 currency funds.
This is yet another example of ETFs democratizing an asset class that was previously difficult or impractical for retail investors to gain access to. However, just because these tools are readily available to everyone (thanks to their exchange-traded nature) doesn't mean they're appropriate.
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John Gabriel does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.