HK Dollar ETF

Discussion in 'ETFs' started by econometrics, Jul 13, 2011.

  1. i wanna make a bet on the HKD de-pegging and appreciating against the USD.
    Instead of buying physical HKD, do you know any ways to make the bet?

    I am aware that there is a Barclays ETN linked to a basket of pegged FX, but i just wanna do the HKD.

  2. Roark


    Buy HSI and/or HHI. They are both denominated in HKD.
  3. thank you very much!
    so if i wanna go long the Yen, should I go buy NKY ?

    anyone pls.
  4. Presumably this is a long-term bet?

    Whilst the currency component is responsible for the majority of the % return in EM equities - and therefore you could invest in emerging currencies via an equity index ETF hedged with something like VTI - I'm pretty sure it wouldn't be the case for Hong Kong.

    In other words, you take on all the interim volatility of the HK stock market (unwanted risk) for the possibility of a long-term gain in the currency.

    FX forwards would be one way to express the view, not easy to do for retail investors. Otherwise, a HKD/USD trade on one of the FX platforms if you have a shorter timeframe. But the 'roll' on a retail account might eat everything up before your day in the sun arrives.

    For yen vs. NKY, the result might be counter-intuitive. Check the correlation of returns. Yen ETF seems a more obvious vehicle for you.
  5. dtan1e


    did u get info from somewhere?
  6. ok so there is no direct retail product that gives me the right exposure..gotta trade the fx directly
  7. open an account in HKD
  8. why not try fx forwards? they are quite widely used by traders to predict when de-pegging (among other things) will occur.
  9. melo


    Why not read the earlier posts .. :)
  10. so any ideas about going long the HKD spot? instead of holding cash of cos.
    #10     Jul 26, 2011