Currency Diversification

[Andy R]

I would like to hedge against the Dollar by investing in other currencies since I live outside the United States for a good portion of each year. Are there any solid ETFs that you can recommend for currency diversification?

 

[tomintucson]

Andy,

One choice (not a bank) is Everbank. Hillbilly customer service, but that's where I turned to buy a whole buncha Chinese renmimbi.

Tom

 

[tomintucson]

Oops- meant to say not an ETF, is a bank.

 

[dex]

Since you live outside the USA you might look into global banks - Deutsche Bank , HSBC etc.

 

[FIREd]

If you want broad dollar diversification, what about an unhedged global bond fund (like BEGBX)? You get instant diversification in Euros, Yen, SFr., Pounds, etc... Or you can investigate foreign currency deposits (either CDs or savings accounts). For that, see Everbank in the US or take your money abroad directly (which has its own set of benefits and challenges). For a pure currency play, you can also look at foreign currency ETFs (like Wisdom Tree's). I don't know much about those (are they thinly traded, etc...). They seem pretty new so I don't how "solid" they are...

http://www.wisdomtree.com/bannerads...&Ad=Currency&gclid=CPrAqK2K85UCFQNKxwodungvKw

 

[Andy R]

Thanks for the information. BEGBX and Everbank look like nice options. I take it Everbank is a well known and trusted bank, ie. I don't need to worry they won't be around in 6 months?

 

[REWahoo]

I take it Everbank is a well known and trusted bank, ie. I don't need to worry they won't be around in 6 months?

Andy, have you been paying attention to what is taking place in the world's financial markets? Do you want us to lie to you?

 

[HFWR]

I don't need to worry they won't be around in 6 months?

Yeah, and Bear Stearns, Lehman, etc. will be around, too...

FXF is an ETF for Swiss francs. I know there are others, but I don't recall the symbols offhand.

 

[Andy R]

Well some banks I have more trust in like Wells Fargo or others that did not get "crafty" with derivatives and other financial instruments. I don't know anything about Everbank, I was hoping someone might know more about their reputation or type of bank they are?

 

[tomintucson]

Andy,

My Everbank account is valued at just over $105,000. The first $100,000 is FDIC insured.

Tom

 

[mark500]

An unhedged international stock index fund provides currency diversification, if you want to go the equity route.

 

[sailor]

GIM has been good for me.

 

[Andy R]

I just wanted to post a follow up to this thread saying thanks for pointing me to Everbank. In late January I ended up getting WorldCurrency CDs for Norwegian Crowns, Swedish Crowns, New Zealand Dollars, Canadian Dollars, Australian Dollars, Swiss Francs, Pounds, and Euros. It was the exact type of diversification I was looking for.

 

[Maurice]

I missed this thread the first time around, but I'll second (or third) the recommendation. I've been using them since 2002 when I bought a lot of Euros. (best market timing of my life)