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Finally, An Easy Way To Invest In The Chinese Yuan

14 May 2008 6 Comments



WisdomTree has just released a series of ETFs that allow investors to easily invest in foreign currencies. The ETFs are as follows:

  • Chinese Yuan (CYB)
  • Indian Rupee (ICN)
  • Brazilian Real (BZF)
  • Euro (EU)
  • Japanese Yen (JYF)

I am especially interested in the Chinese Yuan; mostly, because one of my favorite investors and authors, Jim Rogers, has been claiming the Yuan is one of the best investments to make in the current environment.  Rogers’ track record and knowledge speaks for itself.  I encourage all young investors to familiarize yourself with Rogers and his experience.

The WisdomTree website provides the following information regarding the new ETFs:

The WisdomTree Dreyfus Currency Income Funds are exchange-traded funds (ETFs) that invest either in non-U.S. money market securities, or in a combination of U.S. money market instruments and instruments that are designed to provide exposure to non-U.S. money market securities or rates. They seek to offer investors current income reflective of foreign money market rates available to U.S. investors, as well as exposure to changes in the value of a specified currency relative to the U.S. dollar.

I am going to do some further research and look into whether this is a good way to gain some exposure to the Chinese Yuan.  Either way, this is a good thing for investors looking for easy ways to invest in foreign currencies as this may start the trend of more investment vehicles offering exposure to foreign currencies.

6 Comments »

  • Investment Tool said:

    Yuan is a good investment because of the Chinese economy that is growing well.

  • Best Way To Invest Money said:

    Hi,
    Investing into Chinese Yuan is a very good decisions. As the the market is growing day by day the returns from these investments are also growing. Thank you for the information.

  • Dividend Growth Investor said:

    Or you could simply open an FX account with oanda.com, and that way you get much more liquidity in FX trading as well as no annual fee to pay to wisdomtree. In addition to that, there’s no commissions to trading FX.
    Just my 2 cents!

  • iGuide said:

    It would be nice to simply be able to buy investment-grade corporate bonds denominated in emerging market currencies. While still risky, the ride would be smoother than their stock markets. Of course, I don’t think there are any quality sovereign bonds available, so stay away from those.

  • Mike said:

    I would feel as though I am buying a little piece of america