New York-based asset manager Van Eck Global announced today that it has launched Market Vectors Renminbi Bond ETF (NYSE Arca: CHLC), an exchange-traded fund (ETF) which offers investors exposure to Chinese renminbi (RMB)-denominated bonds, often referred to as “dim sum” bonds. CHLC seeks to track, before fees and expenses, the price and yield performance of the Market Vectors Renminbi Bond Index (ticker: MVCHLC), an index designed to track the performance of RMB-denominated investment-grade bonds or unrated bonds from investment grade issuers in and outside of China.
“The world is transitioning from a period of U.S. dollar dominance to an era of currency blocs that better reflect the dispersion of economic growth. Certainly, the renminbi will be one of those currency blocs and China has taken significant steps to internationalize the RMB over the past two years,” said Jan van Eck, Principal at Van Eck Global. “As this trend continues, investors should consider allocating to each of these blocs over time, but neither China stocks nor China bonds are represented in widely used indices. By adding CHLC to the roster of Market Vectors China-focused products, we’re looking to make it easier for investors to add RMB-denominated exposure to their portfolios.”
The launch of CHLC reflects an increase in Van Eck’s commitment to the China investment theme and the ongoing evolution of Van Eck’s China-focused product offerings. In 2008, the firm distributed the first U.S.-listed Chinese currency exchange-traded note, Market Vectors Chinese Renminbi/USD ETN (NYSE Arca: CNY), at the time a cutting edge product that allowed investors to gain indirect exposure to Chinese currency. In 2010 the firm launched the first and currently the only U.S.-listed ETF designed to track the performance of an index composed solely of China A-Shares, Market Vectors China ETF (NYSE Arca: PEK). Additionally, Van Eck recently opened an office in Shanghai with an eye toward growing its market presence as it seeks to help investors better understand and access the Chinese marketplace.