Finally, An Easy Way To Invest In The Chinese Yuan
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.