As the country tries to balance its economy and avoid trade conflicts with the U.S., investors can benefit from the value of the yuan rising. Investors interested in gaining exposure to the yuan have a couple of ETF options. [WisdomTree: What’s Next for the Chinese Yuan?]
The WisdomTree Dreyfus Chinese Yuan Fund (NYSEArca: CYB) provides an actively managed approach. This is a good investment grade tool for those that want exposure to money market rates in China and the yuan/dollar relationship. CYB is up 2.8% over the past year.
The Market Vectors Chinese Renminbi ETN (NYSEArca: CNY) is an exchange traded note that follows. This note is open to credit risk and uses rolling, three-month currency futures contracts to provide exposure to the exchange rate of the Chinese yuan to the U.S. dollar. CNY is up 2.1% over the past year.
The CurrencyShares Chinese Renminbi Trust (NYSEArca: FXCH) maintains a deposit account denominated in Chinese renminbi, and interest earned will be used to pay expenses and any left over will be distributed to shareholders. FXCH is up 1.6% over the past year.
For more information on the yuan currency, visit our Chinese yuan category.
Max Chen contributed to this article.