A Closer Look at Dim Sum Bond ETFs | ETF Trends

The renminbi-denominated bond market has experienced widespread popularity as investors seek exposure to the Chinese currency.

There are now a trio of exchange traded funds tracking this asset class. [Dim-Sum: Three New Yuan Bond ETFs]

These renminbi-denominated bonds could create a liquidity crunch that stems from lack of assets in the targeted market, according to the Financial Times.

“Liquidity is certainly an issue,”William Belden, head of product development at Guggenheim, said in the FT report. “But the index our fund tracks uses a carefully chosen universe of issuers to maximize liquidity.”