ProFunds is launching two new mutual funds to track the U.S. dollar. Since this is ProFunds, one of the funds will go long (you hope the dollar strengthens) and the other will go short (you hope the dollar weakens). unlike most of fund families, ProFunds place no limits on when and how many times you sell the fund. This is definitely geared towards a trader.

Back in the mid-90’s Fidelity offered 3 currency funds, but they never really garnered much interest, (read: money). So they were discontinued.

Considering the expenses ratio of these two funds (1.45%) I would imagine an investor could do better by investing in foreign bonds. the volitility would more than likely be less. Investing in foreign stocks could also benefit from a weakened dollar, albeit with more volitility than foreign bonds.

Currency Mutual Funds