CHGB ETC for those who think the Swiss franc is worse than the British pound

WisdomTree Short CHF Long GBP (CHGB ETC) It is designed to provide investors with exposure to the Swiss Franc (“CHF”) against the British Pound (“GBP”) by tracking the MSFX Short Swiss Franc/GBP (TR) Index (“the Index”), which is intended to reflect the outcome of a position in rollover futures contracts. Daily.

WisdomTree Short CHF Long Sterling is an exchange-traded currency (ETC). Its securities can be created and redeemed at the request of authorized participants and traded on the stock exchange just like shares in a company. ETC achieves exposure to the index by entering into unfunded swaps with the counterparty. There are no cash payments by the issuer to the counterparty when creating an unfunded swap.

However, daily cash payments are made between the issuer and the counterparty to reflect the daily movements in the value of the index. Separately, the issuer uses the cash it holds to purchase collateral acceptable to the counterparty under a daily reverse repurchase agreement (“reverse repurchase”), an agreement in which the counterparty agrees to repurchase such eligible collateral from the issuer on the next day. Forensic security is maintained by the trustee in the guardianship account.

MSFXSM Short Index for Swiss Franc / Sterling (TR)

Index gives:

(1) A “short” exposure of the Swiss franc against the British pound. For example, if the value of the Swiss franc increases relative to the British pound, the value of the index (which is tracked by ETC) will decrease in value. Conversely, if the Swiss franc falls in value relative to the British pound, the value of the index will rise; And

(2) The interest rate differential that reflects the difference between the exchange rates of the Swiss franc and the British pound.

The index is a total return indicator, which means that it also provides a safe return.

Trading CHGB ETC

WisdomTree Short CHF Long GBP (CHGB ETC) It is a currency that is traded on the stock exchange in the London Stock Exchange.

The London Stock Exchange is a market that a few Swedish banks and online brokers provide access to Dejero Do it.


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