Currency ETFs vs. Their Stock Market Since Market Bottom

By: ETFdb
When it comes to foreign equity exposure, many investors tend to dismiss, or simply aren’t aware of, the impact that foreign currency exchange fluctuations can have on their investments’ bottom-line returns. The fact of the matter is that in many cases a country’s currency can be a direct driver of stock market returns, while other times the relationship between the two can be unexpectedly uncorrelated if not altogether inversely-related [see Foreign Currency Risk 101: What Investors Need To Know]. In light of the recent “Five-Year U.S. Bull Market Anniversary,” we’re taking a stroll down memory lane and reviewing how major currencies and their stock markets, as represented by ETFs, have fared since the bottom. Our reference point for the so-called bottom is March 6th, 2009, which in hindsight was the turning point for the S&P 500 Index. Note that the performance charts below are compiled using cumulative monthly returns with [...] Click here to read the original article on ETFdb.com. Related Posts: The Ultimate Guide To Currency ETF Trading World Cup Of ETFs: Plays On All 32 Countries Monetary Policy Around The Globe: Currency ETF Edition U.S. Vs. U.K. ETFs: 4th Of July Edition Least Correlated Country ETFs To S&P 500
When it comes to foreign equity exposure, many investors tend to dismiss, or simply aren’t aware of, the impact that foreign currency exchange fluctuations can have on their investments’ bottom-line returns. The fact of the matter is that in many cases a country’s currency can be a direct driver of stock market returns, while other times the relationship between the two can be unexpectedly uncorrelated if not altogether inversely-related [see Foreign Currency Risk 101: What Investors Need To Know]. In light of the recent “Five-Year U.S. Bull Market Anniversary,” we’re taking a stroll down memory lane and reviewing how major currencies and their stock markets, as represented by ETFs, have fared since the bottom. Our reference point for the so-called bottom is March 6th, 2009, which in hindsight was the turning point for the S&P 500 Index. Note that the performance charts below are compiled using cumulative monthly returns with [...]

Click here to read the original article on ETFdb.com.

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