FXB VS FXC
3 min read
By Beqa Bumbeishvili, ETF Insider

FXB VS FXC

Exchange-Traded Funds (ETFs) have become a fundamental tool for investors seeking diversified exposure to various sectors and asset classes. In this article, we will undertake a comprehensive comparison of two prominent ETFs: FXB (Invesco CurrencyShares British Pound Sterling Trust) and FXC (Invesco CurrencyShares Canadian Dollar Trust). By delving into essential aspects such as ETF tickers, full names, issuers, sectors, top holdings, capitalization, strategy, tracking, and exposure, we aim to provide investors with valuable insights into these financial instruments.

FXB Vs FXC: Overview

FXB and FXC are two ETFs that offer distinct exposure to currency markets. While FXB is designed to track the British Pound Sterling, FXC is focused on the Canadian Dollar. This difference in currency exposure results in varying potential returns and risks, which we will delve into further in the upcoming sections.

FXB Vs FXC: Sectors and Top Holdings

The FXB ETF primarily focuses on the British Pound Sterling, a major global currency. On the other hand, FXC tracks the Canadian Dollar. Understanding the sectors and top holdings of these ETFs can provide investors with insights into the economic and geopolitical factors that impact these currencies, helping them make more informed investment decisions.

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FXB Vs FXC: Capitalization and Strategy

FXB and FXC have different levels of asset under management (AUM) based on their popularity among investors seeking currency exposure. Their strategies revolve around tracking the movement of their respective currencies in the foreign exchange markets. It's important for investors to consider the correlation between these currencies and other market dynamics that might affect their performance.

FXB Vs FXC: Tracking and Exposure

FXB and FXC both aim to provide investors with exposure to the foreign exchange market. FXB tracks the performance of the British Pound Sterling against the US Dollar, while FXC tracks the Canadian Dollar against the US Dollar. Investors should be aware of the intricacies of currency movements and the factors that influence exchange rates when considering these ETFs.

Conclusion

FXB and FXC offer investors distinct avenues to gain exposure to different major currencies. Each ETF has its own unique strategy, tracking methods, and associated risks. For investors interested in exploring the holdings, correlations, overlaps, and other insights related to these currency-focused ETFs, the ETF Insider platform proves to be an invaluable resource. This user-friendly app provides in-depth information about FXB, FXC, and other financial instruments, enabling investors to make well-informed decisions.

Disclaimer: This article is provided for informational purposes only and does not offer investment advisory services.

Sources:

ETF Issuer: https://www.ishares.com/
Official Page for the iShares China Large Cap UCITS ETF (FXC): https://www.ishares.com/uk/individual/en/products/251798/ishares-china-large-cap-ucits-etf

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FAQ

  • Why is FXB better than FXC?

    FXB may be considered better than FXC for some investors due to its specific focus, offering diversification.

  • Does FXC beat FXB?

    FXC's performance relative to FXB will vary over time, depending on market conditions.

  • Should I invest in FXB or FXC?

    The choice between FXB and FXC should align with your investment goals, risk tolerance, and desired exposure.

  • Are FXB and FXC good investments?

    Both FXB and FXC can be suitable investments depending on individual investment strategies, goals, and risk profiles.

  • What is the correlation between FXB and FXC?

    The correlation between FXB and FXC can vary over time, reflecting differences in performance.