ETF Expert

1. Tom Lydon of ETF Trends notes that there’s a great deal of talk about ethical investing lately. And yet, what might be ethical to one person might be unethical to another.

Is it wrong to invest in timber via the Claymore/Clear Global Timber Index Fund (CUT)? Do lumber companies provide shelter or destroy the environment? What about investing in agriculture through the Market Vectors Global Agribusiness ETF (MOO)? Do these corporations increase the supply of food or do they engage in questionable activities like "genetic modification?"

For those that fancy themselves as socially responsible, there’s the iShares KLD Select Social Index Fund (KLD). It avoids companies that may engage in practices that are harmful to the environment or animals. On the other side of that spectrum, the brand new FocusShares ISE SINdex Fund (PUF) buys companies involved in casinos, liquor and cigarettes. You can be the judge.

2. The Bank of Canada lowered its interest rate for the first time in more than three years. This sent the CurrencyShares Canadian Dollar Trust (FXC) down to two-and-a-half month lows against the U.S. dollar.

Even though Canada worries about the Canadian dollar exhibiting too much strength, and while it has cut rates to help its country’s exports, the Canadian dollar’s recent weakness is not an attractive entry point for the currency. The profits in the Canadian dollar, Euro and Australian dollar have largely been realized already.

In the near term, the CurrencyShares Swiss Franc Trust (FXF) has the best prospects, as currency traders around the world reassess risk.