A currency-hedged Chinese ETF

The Chinese Yuan and the Canadian dollar are all over he news recently.

Investors using Canadian dollars have lost 18% one year. One year ago, one Canadian dollar bought 5.60 Yuans, today it buys 6.80.

Today China has announced a policy shift in its currency (NY Times):

“The Chinese government is set to announce a revision of its currency policy in the coming days that will allow greater variation in the value of its currency combined with a small but immediate jump in its value against the dollar, people with knowledge of the consensus emerging in Beijing said Thursday.”

A currency hedged ETF is BMO"s ZCH (click for alerts). It has been around since January and it has indeed gone up about 8% since then.:

This ETF has a0.65% MER.

Major sectors:

• 23% energy
• 20 telecom
• 20% IT

Returns of the top holdings:

• China Mobile: +14%
• China Life: +41%
• Petro China: +46%
• Baidu: +224%

Baidu of course benefiting from Google's troubles in China.