RMB (Chinese Yuan) Currency

RMB (Chinese Renminbi/Chinese Yuan) currency funds and ETFs invest the majority of... RMB (Chinese Renminbi/Chinese Yuan) currency funds and ETFs invest the majority of their assets in Chinese Renminbi/Chinese Yuan currency futures contracts. These funds, which tend to be priced in U.S. dollars, are usually passively managed. They can be leveraged or unleveraged. The Chinese currency’s value vs. the U.S dollar is affected by a number of factors, such as relative interest rates (interest rate differentials among countries), economic growth expectations, commodity prices, budget and trade deficits, and geopolitical tensions. It’s important to note that the Renminbi/Yuan’s value is heavily controlled by the People’s Bank of China, the nation’s central bank. As such, the currency tends to exhibit very low levels of volatility on a daily basis, although revaluations higher or lower can change that. RMB currency funds and ETFs may be appropriate for an aggressive investor willing to take on a fair amount of risk to achieve higher returns. Last Updated: 04/16/2024 View more View less

RMB (Chinese Renminbi/Chinese Yuan) currency funds and ETFs invest the majority of their assets in Chinese Renminbi/Chinese Yuan currency futures contracts. These funds, which tend to be priced in U.S. dollars, are usually... RMB (Chinese Renminbi/Chinese Yuan) currency funds and ETFs invest the majority of their assets in Chinese Renminbi/Chinese Yuan currency futures contracts. These funds, which tend to be priced in U.S. dollars, are usually passively managed. They can be leveraged or unleveraged. The Chinese currency’s value vs. the U.S dollar is affected by a number of factors, such as relative interest rates (interest rate differentials among countries), economic growth expectations, commodity prices, budget and trade deficits, and geopolitical tensions. It’s important to note that the Renminbi/Yuan’s value is heavily controlled by the People’s Bank of China, the nation’s central bank. As such, the currency tends to exhibit very low levels of volatility on a daily basis, although revaluations higher or lower can change that. RMB currency funds and ETFs may be appropriate for an aggressive investor willing to take on a fair amount of risk to achieve higher returns. Last Updated: 04/16/2024 View more View less