WisdomTree Short CNY Long USD (XBJF ETC) It is designed to provide investors with exposure to the Chinese renminbi (“Chinese renminbi”).CNY“) against the US dollar (“American dollar”) by tracking the MSFX (TR) Chinese Renminbi Short Index (“the Index”), which aims to reflect the performance of the position in futures contracts that are rotated on a daily basis.
WisdomTree Short CNY Long USD It 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 gains exposure to the index by entering into unfunded swaps with the counterparty. There is no cash advance from the issuer to the counterparty when creating an unfunded swap.
However, daily cash payments are made between the issuer and the counterparty to reflect daily changes in the value of the index. Separately, the issuer uses the cash it holds to purchase acceptable collateral from the counterparty under a daily reverse repurchase agreement (“reverse repurchase”), an agreement in which the counterparty agrees to repurchase such accepted collateral from the issuer on the next day. The securities accepted by the depositary are stored in a warehouse.
MSFXSM (TR) Chinese Renminbi Short Index
(1) A “short” exposure of the CNY to the US dollar. For example, if the value of the Chinese yuan rises against the US dollar, the value of the index (followed by ETC) will decrease in value. Conversely, if the value of the Chinese yuan falls relative to the US dollar, the value of the index will rise; And
(2) The interest rate differential that reflects the difference between the exchange rates of the Chinese yuan and the US dollar.
The index is a total return index, which means that it also provides a guaranteed return.
XBJF ETC Trading
WisdomTree Short CNY Long USD (XBJF ETC) It is an exchange-traded currency (“ETC”). ETC is traded on many different exchanges, such as the Deutsche Boerse Xetra and the London Stock Exchange. For this reason, different acronyms appear on the same ETF.
This means that it is possible to trade shares in ETC through most Swedish banks and online brokers, for example DejeroAnd nordnet And keep it up.