WisdomTree Long CNY Short USD (XBJE ETC) Designed to give investors exposure to the Chinese language renminbi (“CNY”) against the US Dollar (“USD”) by tracking the MSFX Long (TR) Chinese Yuan Index (“the Index”), which aims to reflect the performance of a futures position that rotates on a daily basis.
WisdomTree Long CNY Short 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 Chinese Renminbi Long Index (TR)
(1) “Long” 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 rise. Conversely, if the Chinese yuan decreases in value compared to the US dollar, the value of the index will also decrease; And the
(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.
XBJE ETC Trading
WisdomTree Long CNY Short USD (XBJE ETC) It is a European currency that is traded on the stock exchange. ETC is traded on many different exchanges, such as Borsa Italiana and Deutsche Boerse Xetra. For this reason, different acronyms appear on the same exchange-traded currency.
This means that it is possible to trade shares in ETC through most Swedish banks and online brokers, for example DejeroAnd the nordnet And the keep it up.