“The basic premise is it’s undervalued” due to the country’s long standing protectionist policies, Davidow added, “and China will have to be part of any sort of global recovery.”
Currency ETFs help create a well-rounded, diversified investment portfolio.
“Historically, people didn’t have to worry about foreign currencies,” Michael Rawson, ETF analyst at Morningstar, said in the CNBC report. “Now the importance of trade in our economy has increased, and the importance of inflation has increased. We recognize that demand for internationally traded goods — food, oil — are based of international demand, not just U.S. demand.”
For more information on world currencies, visit our currency ETFs category.
Max Chen contributed to this article.