In the News: SeekingAlpha

In this exclusive SeekingAlpha interview, portfolio manager Axel Merk highlights ways investors are able to take advantage of diversification currencies may offer

"...Now just to give a little bit of background as to what instrument might be more suitable for certain types of investors: If an investor has a strong conviction of what a currency or basket of currency may do tomorrow, that investor may want to use a leveraged vehicle. Because quite frankly, the movements in the currency markets are not all that exciting. Everybody gets all excited when a currency moves by one cent, but on a percentage basis that’s very little.

Whereas an investor who wants to have longer-term exposure to a currency, and thinks the U.S. dollar may weaken over time - they may want to have a non-levered vehicle. And there again, if you have a stronger view about a particular currency, you can do that with a single-currency [fund] such as FXE, or you can use a basket of currencies, or alternatively, you can also choose to outsource some of that by choosing a managed basket of currencies in a mutual fund setting..."