<p>An Yen ETF (Exchange-Traded Fund) is a financial instrument that tracks the performance of the Japanese yen. It provides investors with exposure to the yen's movements against other currencies, typically the U.S. dollar.</p>

<h2>How It Works</h2>
<p>Yen ETFs are structured as grantor trusts, which means they hold physical yen in a bank account. The value of the ETF is determined by the exchange rate between the yen and the base currency (usually the U.S. dollar). When the yen appreciates, the ETF's value increases, and vice versa. Investors can buy or sell shares of the ETF on stock exchanges, just like stocks.</p>
<p>Some popular Yen ETFs include:</p>
<ul>
  <li>CurrencyShares Japanese Yen Trust (FXY)</li>
  <li>WisdomTree Japanese Yen (JYN)</li>
  <li>ProShares UltraShort Yen (YCS)</li>
</ul>

<h2>Why It Matters</h2>
<p>Yen ETFs matter to investors for several reasons:</p>
<ol>
  <li><strong>Hedging</strong>: Investors with foreign currency exposure can use Yen ETFs to hedge against currency risk. If the yen strengthens, the value of their foreign investments may decrease, but their Yen ETF position would increase, offsetting some of the loss.</li>
  <li><strong>Currency speculation</strong>: Investors can use Yen ETFs to speculate on the yen's movements. For example, if an investor believes the yen will appreciate against the dollar, they might buy shares of an Yen ETF like FXY.</li>
</ol>