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Tradable FX indices offer cheap alternative

The search for uncorrelated returns leads to currency

At a time when achieving returns of 0% rather than negative numbers is a cause for celebration, the latest performance figures suggest that tradable foreign exchange indices might just have beaten the economic crisis.

The purpose of tradable FX indices is to enable investors to achieve currency exposure without either buying into a currency fund or trading directly in one or more currency pairs. They are intended to reduce volatility of returns as well as delivering absolute returns while maintaining negative correlation with equity and bond markets.

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