Call the global ETF industry what you want, but you can’t deny that they’re not quick to react to changing investor demands.
Not even a week since news broke that China would consider some flexibility in its exchange rate, and we have this announcement from ETF Securities:
Europe’s First China Currency ETC Lists as China Removes Peg to US Dollar
ETFS Securities lists four new emerging market Currency ETCs with long or short exposure to the Chinese Renminbi and Indian Rupee. For the first time in Europe, investors have now access to emerging market Currency ETCs which enable investors to go long or short the Chinese Renminbi (CNY) or the Indian Rupee (INR). The launch has coincides with news that China has returned to a managed float of its currency.
Although we should note that this product is not a traditional ETF, but rather an ETC — and investors would be wise to read the prospectus in detail before rushing in for some renminbi exposure.
Related links:
Renminbi ruminations – FT Alphaville
Renminbi reservations - FT Alphaville