CurrencyShares Rolls Out Renminbi ETF
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CurrencyShares Rolls Out Renminbi ETF
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"CurrencyShares, the company that was recently brought under an ownership umbrella controlled by Guggenheim, rolled out a currency ETF that is designed to reflect the value of China’s currency, the renminbi, in dollars.
The CurrencyShares Chinese Renminbi Trust (NYSEArca: FXCH) will arrive in a field, if not crowded, then already well staked out by the WisdomTree Dreyfus Chinese Yuan Fund (NYSEArca: CYB). The WisdomTree fund, which came to market about three years ago, has about $521 million in assets, according to data compiled by IndexUniverse.
Since the Chinese government first committed in the summer of 2005 to letting its currency appreciate against the dollar, the renminbi has risen against the greenback. That upward trend has been halted in times of crisis, such as the market crash of 2008, when investors tend to flock to the dollar. But its upward trend over time is widely considered inevitable.
Moreover, some sources believe currency appreciation is a tool China will use to tame inflationary pressures as its economy grows. A stronger currency would soften the blow of inflation by increasing purchasing power for China as it seeks out goods and services in global markets.
CurrencyShares said on its website that FXCH comes with an annual expense ratio of 0.40 percent, matching the prices on its other currency funds, including the $354 million CurrencyShares Euro Trust (NYSEArca: FXE) and the $792 million CurrencyShares Canadian Dollar Trust (NYSEArca: FXC)
WisdomTree’s CYB has a 0.45 percent annual expense ratio." - By Index Universe
"CurrencyShares, the company that was recently brought under an ownership umbrella controlled by Guggenheim, rolled out a currency ETF that is designed to reflect the value of China’s currency, the renminbi, in dollars.
The CurrencyShares Chinese Renminbi Trust (NYSEArca: FXCH) will arrive in a field, if not crowded, then already well staked out by the WisdomTree Dreyfus Chinese Yuan Fund (NYSEArca: CYB). The WisdomTree fund, which came to market about three years ago, has about $521 million in assets, according to data compiled by IndexUniverse.
Since the Chinese government first committed in the summer of 2005 to letting its currency appreciate against the dollar, the renminbi has risen against the greenback. That upward trend has been halted in times of crisis, such as the market crash of 2008, when investors tend to flock to the dollar. But its upward trend over time is widely considered inevitable.
Moreover, some sources believe currency appreciation is a tool China will use to tame inflationary pressures as its economy grows. A stronger currency would soften the blow of inflation by increasing purchasing power for China as it seeks out goods and services in global markets.
CurrencyShares said on its website that FXCH comes with an annual expense ratio of 0.40 percent, matching the prices on its other currency funds, including the $354 million CurrencyShares Euro Trust (NYSEArca: FXE) and the $792 million CurrencyShares Canadian Dollar Trust (NYSEArca: FXC)
WisdomTree’s CYB has a 0.45 percent annual expense ratio." - By Index Universe
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Portfolio Analyser: Ferramenta para backtests de Fundos e ETFs Europeus
"We don’t need a crystal ball to be successful investors. However, investing as if you have one is almost guaranteed to lead to sub-par results." The Irrelevant Investor
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