Why invest in Currency Hedged?
Currency Hedged ETF’s aim to minimize or eliminate foreign currency risk associated with investing abroad. When investing abroad the investors do take on secondary risk of favorable or unfavorable currency fluctuations. The funds in this category use various hedging tools like forwards, futures etc to mitigate any such risk exposure. This strategy is popular during times of greater currency volatility , like in recent times when central banks were following a loose monetary policy making currency movements unpredictable. The currency volatility hedging might be more relevant when investing in international fixed income/bonds
|Name of the Fund||Ticker Symbol /Total AUM*||Year of Inception||Expense Ratio|
|WisdomTree Japan Hedged Equity||HEDJ||12/31/2009||0.58%|
|WisdomTree Japan Hedged Equity||DXJ||06/16/2006||0.48%|
|iShares Currency Hedged MSCI EAFE||HEFA||01/31/2014||0.36%|
|Deutsche X-trackers MSCI Europe Hedgd Equity||DBEU||10/01/2013||0.45%|
|Deutsche X-trackers MSCI Japan Hedged Equity||DBJP||06/09/2011||0.45%|