Is it better to put money in foreign currencies or ETFs?

Discussion in 'ETFs' started by DrPepper, Nov 18, 2009.

  1. I found out that there is an Everbank branch in my city and I was going to open an account and put some money into the Australian dollar, Brazilian Real and the Euro to protect myself against the declining US dollar. However, they do charge fees and it is expensive to switch to different currencies. Alternatively, I could put the same amount of money into FXA, BZF and FXE. The commissions would be lower and I could move the money faster if necessary. However, there would be fund expenses and capital gains (hopefully). Any thoughts on the pros and cons of these 2 different approaches to investing in foreign currencies?