For investors looking for momentum Wisdomtree Chinese Yuan Strategy Fund is probably a suitable pick. The fund just hit a 52-week high and is up 14.7% from its 52-week low price of $24.20/share.

Let’s take a look at the fund and its near-term outlook to gain an insight into where it might be headed:

CYB in Focus

This ETF is active and does not track a benchmark. The WisdomTree Chinese Yuan Strategy ETF seeks to achieve total returns reflective of both money market rates in China available to foreign investors and changes in value of the Chinese Yuan relative to the U.S. dollar. It charges 45 bps in fees.

Why the Move?

China’s yuan has been on a winning streak. China’s apparent efficiency in handling the coronavirus pandemic as opposed to the other countries or continents has probably given strength to the yuan. The continuous inflow toward China’s bonds and stocks will probably make the currency the strongest in about three decades, predicted by one yuan bull, as quoted on Bloomberg.

China’s onshore markets have lately amassed about tens of billions of dollars worth of foreign investment this year thanks to equity gains backed by its economic recovery. This in turn strengthened demand for the renminbi that is needed to pick shares in Shanghai and Shenzhen, the Financial Times article noted.

More Gains Ahead?

The fund has a positive weighted alpha of 11.90. So, there is a decent outlook ahead for those who want to ride this surging ETF a shade further.

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