Wirehouse Advisors' Tactical Play on Currency ETFs

Posted on May 7th, 2015 at 12:02 PM
Wirehouse Advisors' Tactical Play on Currency ETFs

According to a top investment strategist at Bank of America Merrill Lynch, more financial advisers are investing in funds that access European stocks while muting currency swings. That’s because the European Central Bank began a “quantitative easing” program that will inject a planned €1.1 trillion into the economy by September 2016.   

The program is expected to decrease the value of the Euro — a boost to companies in Germany, France and Italy that export goods and services. In order to take advantage of the market opportunity, currency-hedged ETFs are a tool to deliver the returns of a basket of foreign investments without the volatility that comes from currency movements.

Most advisors believe that the tactic is prudent as long as the ECB continues to support its economy with aggressive monetary policy, perhaps at least another 12 to 18 months.

Related Attorneys: James J. Eccleston

Tags: Jim Eccleston, Eccleston Law, Bank of America, investment, investing, European Central Bank

Return to Archive



I just received this letter from the CFP Board. Thank you, Thank you, THANK YOU!

David Y


June 14, 2024
Wells Fargo Fires Employees for Faking Work

Wells Fargo & Co. recently terminated over a dozen employees following an investigation into allegations of fake work activities.

June 13, 2024
FINRA Struggles to Revise Outside Business Rules

The Financial Industry Regulatory Authority’s (FINRA) attempt to update its rules on advisors’ outside business activities has stalled, according to Robert Colby, FINRA's chief legal officer.

June 12, 2024
Tax Court Denies Madoff Victims $8.2 Million Deduction

Victims of Bernie Madoff's Ponzi scheme, Christopher and Silvana Pascucci, cannot claim an $8.2 million tax deduction for their investment in life insurance premiums.