ETF Market Notes: WisdomTree Offers Yuan ETF
You Want Yuan? You Got Yuan.
Many of the exchange-traded funds (ETFs) brought to the ETF market by WisdomTree Investments have an international flavor. And one of WisdomTree’s newest additions — the WisdomTree Dreyfus Chinese Yuan Fund ETF
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The CYB is one of eight currency income funds offered by WisdomTree. The ETF is built to reproduce both money market returns for the Chinese currency as well as capture changes in value between the Yuan and the American dollar. Find out more about the WisdomTree Dreyfus Chinese Yuan Fund here.
WisdomTree ETFs are constructed differently from many ETFs. Unique in the ETF market, WisdomTree ETFs are based on the WisdomTree Indexes, which are proprietary indexes that are dividend and earnings-weighted. The goal of this approach, according to WisdomTree, is to ensure that those companies with the highest dividend yields or earnings yields will be weighted more heavily in the ETF relative to other companies in that market, sector or country.
WisdomTree does not currently market an ETF that provides direct exposure to Chinese equities (the biggest Chinese ETF in the market is the iShares FTSE/Xinhua China 25 ETF
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David Penn is Editor in Chief at TradingMarkets.com.