Investors seeking momentum may have WisdomTree Chinese Yuan Strategy Fund (CYB - Free Report) on radar now. The fund recently hit a new 52-week high. Shares of CYB are up approximately 10.79% from a 52-week low of $22.89/share.
But could there be more gains ahead for this ETF? Let’s take a look at the fund and the near-term outlook to get a better idea of where it might be headed.
CYB in Focus
CYB focuses on providing exposure to the value of the Chinese currency, yuan. It seeks to invest in short-term investment grade securities. It charges 45 basis points in fees per year and has AUM of $37.97 million (see all Currency ETFs here).
Why the Move?
The Chinese currency has been rallying lately. This can be attributed to multiple reasons. The US dollar has been weak lately owing to the uncertainty around further interest rate hikes. Adding to the agony, the political uncertainty prevailing in the United States weighed on the dollar. Moreover, the strength in the yuan might also be indicative of China’s aims to stop rapid cash outflows and the premier’s desire to better relations with his U.S. counterpart who accuses China of manipulating its currency.
More Gains Ahead?
The fund has a weighted alpha of 5.9. It is up over 7.5% so far this year owing to rising optimism in the region. So, there is a promising outlook ahead for those who want to ride this surging ETF a shade further.
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