First China Bond ETF Debuts: RMB Taps “Dim Sum” Market

Guggenheim has apparently won the race to launch the first U.S.-listed ETF offering pure play exposure to the Chinese bond market, debuting its China Yuan Bond Fund (RMB) on Thursday. The new ETF, which launches as a handful of other issuers have already laid the groundwork for similar products, will seek to replicate the AlphaShares China Yuan Bond Index. That index consists of about 37 debt securities that are eligible for investment by international investors and are denominated in Chinese yuan. The underlying index does not consist of securities traded in mainland China; rather, the components of RMB are part of the “Dim Sum” bond market. Those securities are denominated in yuan and generally issued by Chinese entities in Hong Kong, making them accessible to international investors. So RMB brings U.S. investors about as close to Chinese debt as is currently possible, but it won’t put them on the same [...] Click here to read the original article on ETFdb.com. Related Posts: ETF Pipeline: Van Eck Planning “Dim Sum” Bond ETFs WisdomTree Posts Strong Q2 Results One Year Later: EMLC Comes Through For Yield Hungry Investors International Bond ETFs: Cruising Through All The Options Talking Actively-Managed ETFs With Tom Graves Of S&P