This product is one of several that offers exposure to the value of the Chinese Renminbi, which is also known as the yuan. As such, FXCH is a potentially intriguing option for those looking to bet on an appreciation of the Chinese currency; this product should perform well as the U.S. dollar price of the yuan climbs. Given this investment objective, investors shouldn't expect huge price appreciation from FXCH; this product is more likely to be a source of slow, steady growth as the yuan climbs. There are a few aspects of FXCH that are particularly noteworthy. First, this fund is structured as a grantor trust that invests in foreign, renminbi-denominated banks deposits. The grantor trust structure differs slightly from the structure of true 1940 Act ETFs; FXCH may be subject to taxation at ordinary income rates, and may maintain a concentration of counterparty risk. For these reasons, we would generally recommend achieving exposure to the Chinese yuan through CYB, the WisdomTree product that is structured as an ETF. Although that fund is slightly more expensive, CYB is designed to capture both currency appreciation and money market rates available to foreign investors; that additional yield should more than offset any expense differential. It should also be noted that CYB's tax structure is potentially favorable for investors with a longer time horizon. Other alternatives for establishing exposure to the Chinese currency include products that invest in Chinese bonds, such as RMB and DSUM. In short, FXCH is a fine product; it offers cheap and easy exposure to an asset class that has the potential to generate stable, non-correlated returns. But we believe there are vehicles available that harness this asset more efficiently.
The adjacent table gives investors an individual Realtime Rating for FXCH on several different metrics, including liquidity, expenses, performance, volatility, dividend, concentration of holdings in addition to an overall rating. The "A+ Metric Rated ETF" field, available to ETFdb Pro members, shows the ETF in the Currency with the highest Metric Realtime Rating for each individual field. To view all of this data, sign up for a free 14-day trial for ETFdb Pro. To view information on how the ETFdb Realtime Ratings work, click here.View the Category Report
The following tables and charts contain in-depth metrics for this ETF and compare it to similar peer ETFs within its ETFdb Category.
This ETF is not currently available for commission free trading on any platforms.
There are 13 other ETFs in the Currency ETFdb Category that are also eligible for commission free trading:
This section shows how this ETF has performed relative to its peer group ETFdb Category.
The following charts can be customized to display historical performance in a number of different formats, including line charts, bar charts, and candlesticks. Time periods can be adjusted to increase or decrease the period shown, ranging from five minutes to several months.
The following chart also includes the option to compare the performance of FXCH relative to other ETFs and benchmarks or to include indicators such as Bollinger Bands, relative strength, and moving averages.
This section shows how the volatility of this ETF compares to the peer group ETFdb Category.
2014 Morningstar, Inc. All Rights Reserved. The information contained herein: ( 1 ) is proprietary to Morningstar and/or its content providers; ( 2 ) may not be copied or distributed; and ( 3 ) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results.