Do ETF/ETNs invest directly in futures or forex, or do they just invest in stocks and bonds?

Question

Do ETF/ETNs invest directly in futures or forex? Or do they just invest in stocks and bonds?

Answer 1

Currencies

ETFs that track currency movements are called currency ETFs. The simplest currency ETFs hold their foreign currency in a bank account.

Futures

Many synthetic ETFs use futures to track the price of an underlying. This is common in commodities ETFs, especially for commodities that are difficult and/or expensive to store long-term. An example would be a crude oil ETF that holds NYMEX futures to track the price of crude oil.