Last Updated on Wednesday, 7 April 2010 07:09 Written by admin Wednesday, 7 April 2010 07:09

Currency ETF spreadsheet coming soon …

Last Updated on Friday, 26 March 2010 09:49 Written by admin Thursday, 25 March 2010 07:25

Swiss Franc ETFs

You can simplify your currency trading by investing in the Swiss Franc using Exchange Traded Funds (ETFs). The symbol for the Swiss Franc ETF is FXF. The name for this ETF is the CurrencyShares Swiss Franc Trust. If the Swiss Franc is undervalued according to the Big Mac Index, buy FXF taking into account the Big Mac Index investing time-frame issue. Here is the description of FXF:

The CurrencyShares Swiss Franc Trust is designed to track the price of the Swiss Franc net of the Trust’s expenses, which are expected to be paid from the interest earned on the deposited Swiss Francs.

Swiss Franc ETF = FXF

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If you think the Swiss Franc will appreciate against the dollar specifically you could invest in the SZE. This is a description of the purpose of SZE:

The ELEMENTS U.S. Dollar/Swiss Franc Exchange Rate ETN is designed for investors who anticipate that the Swiss franc will appreciate against the U.S. dollar. The fund tracks the performance of the U.S. Dollar/Swiss Franc exchange rate plus the returns received on overnight deposits in Swiss Francs.

Swiss Franc vs. Dollar ETF = SZE

Last Updated on Sunday, 21 February 2010 12:25 Written by admin Sunday, 21 February 2010 12:25

For those of you interested in using the Big Mac Index for profit by either buying ETFs that track undervalued currencies or trading in foreign exchange directly, don’t forget about the differences between the short and long run. While PPP will eventually work, it may take years for undervalued currencies to gain value and for overvalued currencies to lost value. Government policies can serve to keep a currency undervalued for decades. That said, trading currency based on the Big Mac Index may be directionally right (under or overvalued), you may not be around long enough to actually see any of the gains.

On the flip side of the coin, if the Big Mac Index verifies other data that is indicating an over or undervaluation of currency, that would probably be a better situation to be involved in. Use it as “a” factor and not “the” factor.