But amidst the broader market weakness, some ASX exchange-traded funds (ETFs) lit up green across the month.

Let's take a look at the best-performing ETFs on the ASX in September. Before we dive in, it's worth noting that this list is limited to the ~190 ASX ETFs tracked by Google Finance.

VanEck Australian Property ETF (ASX: MVA)

According to Google Finance, MVA topped the ETF tables in September with a 7.7% gain.

The MVA ETF invests in a basket of ASX real estate investment trusts (REITs), such as Scentre Group (ASX: SCG) and Goodman Group (ASX: GMG).

The S&P/ASX 200 A-REIT Index (ASX: XPJ) actually shed 13.7% in September, yet the MVA ETF bizarrely shot up in the other direction.

Upon closer inspection, the MVA ETF was sitting well and truly in the red for most of the month. Had the ASX closed at 3pm on Friday last week, MVA would have finished September at $18.86, down 11.7%.

But a few (possibly errant) trades at the 11th hour saw the MVA price suddenly rocket to $23. 

Unsurprisingly, the MVA ETF fell back to earth yesterday, tumbling nearly 18% to close the day at $18.92, back in line with recent prices.

BetaShares US Dollar ETF (ASX: USD)

Had it not been for MVA's unusual trading activity, the BetaShares US Dollar ETF would have taken out the top spot as the best-performing ASX ETF in September.

The USD ETF notched up a monthly rise of 5.8% as the greenback grew even stronger.

The USD ETF aims to track the performance of the US dollar against the Aussie dollar. If the greenback goes up 10% against AUD, the ETF is designed to go up by 10% as well, before fees and expenses.

Across the month, the USD/AUD exchange rate soared from $1.46 to $1.56, representing a rough 6.8% rise. 

Swift interest rate rises from the US Federal Reserve and the relative health of the US economy have seen investors flood into the US dollar. This, in turn, has pushed up the value of the US dollar, particularly against currencies such as the British pound and Japanese yen.

VanEck Gold Miners ETF AUD (ASX: GDX)

Rounding out the top three is the VanEck Gold Miners ETF, which delivered a monthly gain of 4.5%.

The GDX ETF aims to provide investors with global exposure to a diversified portfolio of companies in the gold mining industry. Its top holdings include the likes of Newmont Corporation (NYSE: NEM), Barrick Gold Corp (NYSE: GOLD), and Newcrest Mining Ltd (ASX: NCM).

Gold is often seen as a safe haven for investors during times of market turmoil.

This rang true in September as gold shares held their ground while the market floundered.

This came despite the spot price of gold trending lower across the month, finishing at around US$1,672 an ounce. In fact, according to Reuters, the precious metal was headed towards its worst quarter since March 2021.

The post These were the best-performing ASX ETFs in September appeared first on The Motley Fool Australia.

Investors put in the highest-ever amount of dollars into local ETFs in October, but some products fared far better than others.

A BetaShares report showed cash, bond and fixed interest ETFs featured prominently among the top 10 ETFs that saw the largest inflow of cash last month. 

This perhaps indicated some anxiety with investors about the US election result and sky-high share valuations.

Top 10 hottest Australian ETFs

ETF pioneer Vanguard dominated the top of the charts. 

Its Vanguard Australian Shares Index ETF (ASX: VAS), Vanguard Global Aggregate Bond Index (Hedged) ETF (ASX: VBND), Vanguard Msci Index International Shares Etf (ASX: VGS), and Vanguard Australian Fixed Interest Index ETF (ASX: VAF) collectively brought in about $478 million for the company.

But the most attractive fund of October, iShares Core S&P/Asx 200 Etf (ASX: IOZ), alone pulled in a stunning $326 million of investor funds.

Top 10 coldest Australian ETFs

At the other end of the charts, foreign assets seemed to go out of favour with Australian ETF investors.

The trend could be a validation of the successful suppression of COVID-19 in Australia while the northern hemisphere copped a third wave as it headed into the colder months.

iShares Edge MSCI World Multifactor ETF (ASX: WDMF), iShares MSCI South Korea ETF AUD (ASX: IKO), BetaShares US Dollar ETF (ASX: USD), iShares Europe ETF AUD (ASX: IEU) and Platinum International Fund (Quoted Managed Hedge Fund) (ASX: PIXX) all suffered significant outflows.

BetaShares itself had $34.8 million pulled out of its BetaShares Australian Resources Sector ETF (ASX: QRE), which was the 2nd highest amount.

It's often hard to pinpoint the exact reasons for outflows from a particular ETF, BetaShares head of strategy Ilan Israelstam told The Motley Fool.

"Investors will have their own motivations for increasing or reducing their positions," he said.

"On QRE in particular, our suspicion is that most of the selling was due to investors taking profits, given QRE was up around 34% from its lows in March."

Betashares and AMP Limited (ASX: AMP) recently closed down a trio of ETFs they jointly operate due to a lack of investor interest. Those funds will trade on the ASX for the last time on 4 December.

The last two months have been the only time in history that the Australian ETF industry saw more than $2 billion come inwards each month.

Local ETFs collectively manage $73.8 billion, which is another all-time record.

The post 10 hottest (and coldest) Aussie ETFs right now appeared first on The Motley Fool Australia.

Most of us only convert our Australian dollars into something else when we need to go on holiday, rather than as an investment activity. But is this an untapped avenue investors should explore?

It's relatively easy to own foreign currency these days, either digitally or physically. You can always go down to your nearest bank branch and change your dollars to euros, pounds or yen. Many ASX banks such as Commonwealth Bank of Australia (ASX: CBA) and Westpac Banking Corp (ASX: WBC) also allow you to open foreign currency accounts, where you can keep your chosen currencies alongside your normal bank accounts.

There are also foreign currency exchange-traded funds (ETFs) available. The BetaShares US Dollar ETF (ASX: USD) is one such option, but there are more out there, including for other currencies like the euro and the pound sterling.

Are currencies an investment?

Some people do make a living trading currency. Currencies shift in value every day, so there are definite opportunities in these moves to make profits. But currency is, by definition, a store of wealth, rather than a wealth-producing asset. You can turn cash into an investment with a term deposit or other cash instrument. But these days, the potential for this is not what it used to be, even for currencies outside the Aussie dollar, with interest rates at near-zero in the countries that issue the world's major currencies. As such, I don't see any real value in holding foreign currency as a 'buy-and-hold' investment.

But what about currencies as a hedge? It might not feel like it to us, but the Aussie dollar is a volatile currency by global standards. Think about it. Just this year, our dollar has been worth as little as 55 US cents and as much as 74 US cents at various times.

Our dollar tends to fall in times of global uncertainty (like we saw in the share market crash in March), so holding some of your cash in US dollars might be a good way to hedge against a global share market crash.

Holding some US dollars is a good strategy if you regularly invest in US shares, such as Apple Inc (NASDAQ: AAPL). I myself tend to hold a cash position in both US dollars and Aussie dollars, with regular top-ups for the US dollar account when the exchange rate is decent. 

Foolish takeaway

I wouldn't class foreign currencies as assets in their own right, but you can manage your cash positions a little better by utilising other currencies, especially if you regularly invest overseas. As with all investments, make sure you're not paying too much in fees though!

The post Are foreign currencies worth investing in? appeared first on The Motley Fool Australia.

Australian Dollar (AUD)

As can be seen in the chart above, the Australian dollar has been on a downwards trajectory over the past five years. The movement has helped exporters and investors with holdings overseas.

Is the Aussie dollar headed lower?

I think trading a currency short term is a high risk and unrewarding way to speculate on financial markets. However, if you are investing across markets for the long-term, I think ordinary investors can make money and lower their portfolio's risk by gaining foreign currency exposure.

My rule of thumb with currencies is to invest in the country's currency with a strengthening economic position. It's a common-sense approach. For example, over the past five years, Australia's unemployment and debt position have weakened while the US economy has staged an impressive recovery.

Looking ahead, Australia's Reserve Bank (RBA) is unlikely to raise interest rates for a few years because our economy is fragile. Meanwhile, the US Federal Reserve (Fed) is raising interest rates because their economy is going gangbusters. Therefore, large investors are likely to take their money from Australia and invest it in the US. Together with weaker commodity prices (e.g. iron ore), that could put further pressure on the AUD. 

For the record, I think most of the falls in the Australian dollar are done. The historical average level of the Aussie is in the mid-70 cents. Therefore, at 74.05 US cents, the AUD is a long way from its lofty high of 110 US cents back in 2011, and closer to a more 'normal level'.

Nonetheless, there are many ways to play a weaker Australian dollar.

How to benefit from a lower AUD

There are exchange traded funds or ETFs specifically designed for the purpose of taking Australian dollars and investing them in US dollar bank accounts. The Betashares U.S. Dollar ETF (ASX: USD) is one such example.

Another way to get exposure is to open a US stockbroking account and buy shares of great companies like Apple, Alphabet (the owner of Google) or Amazon.

However, you could also choose to buy shares of Australian companies like Cochlear Limited (ASX: COH) and ResMed Inc. (CHESS) (ASX: RMD) here in Australia.

Cochlear is the world-renowned implantable hearing aid company, developing products to restore the hearing of thousands of people each year. The company has listed its shares on Australia's ASX but does most of its business globally.

The same could be said of ResMed, a leading biotechnology business developing products for sufferers of respiratory conditions like sleep apnoea.

Foolish Takeaway

If you are a long-term investor it makes sense — from a risk and returns perspective — to invest globally. What's more, the United States houses some of the best companies on the planet. So in addition to lowering portfolio risk and currency gains, savvy investors could make money by holding great companies over the long-term.

I know I am.

The post 2 ASX shares for a low Australian Dollar (A$) appeared first on The Motley Fool Australia.