Currency Hedged

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

Key Indicators

 

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%