ETFdb Logo
ETFdb Logo
  • ETF Database
  • Channels
    • Active ETF
    • Alternatives
    • Beyond Basic Beta
    • China Insights
    • Climate Insights
    • Commodities
    • Core Strategies
    • Crypto
    • Disruptive Technology
    • Dividend
    • Dual Impact
    • Emerging Markets
    • Energy Infrastructure
    • ESG
    • ETF Building Blocks
    • ETF Education
    • ETF Strategist
    • Fixed Income
    • Free Cash Flow
    • Future ETFs
    • Global Diversification
    • Gold/Silver/Critical Minerals
    • Innovative ETFs
    • Institutional Income Strategies
    • Leveraged & Inverse
    • Managed Futures
    • Market Insights
    • Megatrends
    • Modern Alpha
    • Multi-Asset
    • Night Effect
    • Portfolio Strategies
    • Retirement Income
    • Richard Bernstein Advisors
    • Tax Efficient Income
    • Thematic Investing
    • Volatility Resource
  • Tools
    • ETF Screener
    • ETF Country Exposure Tool
    • ETF Sector Tracker Tool
    • ETF Database Categories
    • Head-To-Head ETF Comparison Tool
    • ETF Stock Exposure Tool
    • ETF Issuer Fund Flows
    • Indexes
    • Mutual Fund To ETF Converter
    • ETF Data for Journalists
    • ETF Nerds
  • Research
    • First Bitcoin ETF
    • ETF Education
    • Equity Investing
    • Dividend ETFs
    • Leveraged ETFs
    • Inverse ETFs
    • Index Education
    • Index Insights
    • Top ETF Sectors
    • Top ETF Issuers
    • Top ETF Industries
  • Webcasts
  • Themes
    • AI ETFs
    • Blockchain ETFs
    • See all Thematic Investing ETF themes
    • ESG Investing
    • Marijuana ETFs
  • Multimedia
    • ETF 360 Video Series
    • ETF Trends on Videos
    • ETF Trends on Podcasts
    • ETF Prime Podcast
  • Company
    • About Us
    • Swag Store
  • PRO
    • Pro Content
    • Pro Tools
    • Advanced
    • FAQ
    • Pricing
    • Free Sign Up
    • Login
  1. WisdomTree Offers Twist on Currency Play: IndexIQ Launches 50% Currency-Hedged Funds
News
Share

WisdomTree Offers Twist on Currency Play: IndexIQ Launches 50% Currency-Hedged Funds

Daniela Pylypczak-WasylyszynJul 23, 2015
2015-07-23

This week, Wall Street welcomed a whopping 5 ETF firsts; two from WisdomTree and three from IndexIQ.

Wisdom Tree Adds Strong/Weak Dollar ETFs

On July 21, WisdomTree added two new ETF firsts, each of which offer investors a unique way to bet on the U.S. dollar.

The Strong Dollar U.S. Equity Fund (USSD C+) tracks an index comprised of U.S. companies that derive more than 80% of their revenue from the U.S., essentially allowing investors to avoid U.S. companies that have significant revenue from exports that are vulnerable to a strengthening U.S. dollar.

For those wishing to bet against the dollar, the Weak Dollar U.S. Equity Fund (USWD ) invests in U.S. companies that derive less than 60% of revenue from the U.S. The goal is to maximize exposure to multinational, U.S. export companies that would benefit from a weaker U.S. dollar.

Commenting on the launch, WisdomTree Director of Research Jeremy Schwartz stated “Not all U.S. equities are the same and the degree their operating results are affected by changes in the U.S. dollar largely depends on if their revenues are derived domestically or internationally. USSD and USWD enable investors to focus on the sectors and companies expected to perform better in strong and weak dollar environments, respectively, while maintaining broad diversification.”

Both funds charge 0.33%.


Content continues below advertisement

IndexIQ Launches Suite of 50% Currency-Hedged Funds

IndexIQ entered the currency-hedged game, launching three new ETF firsts on July 22. The suite tracks FTSE indexes designed to hedge approximately half of its exposure against the U.S. dollar on a monthly basis:

  • IQ 50 Percent Hedged FTSE International ETF (HFXI B+): This fund invests in equities from the EAFE region, hedging 50% against the U.S. dollar. HFXI charges 0.35%.
  • IQ 50 Percent Hedged FTSE Europe ETF (HFXE A-): This ETF measures the performance of equities in developed European economies, while hedging half of its currency exposure against the U.S. dollar. HFXE charges 0.45%.
  • IQ 50 Percent Hedged FTSE Japan ETF (HFXJ C+): This fund invests in Japanese equities, hedging roughly 50% of the exposure to the yen against the U.S. dollar.

IndexIQ CEO Adam Patti commented, “Our research has shown that 50% hedged portfolios have the potential to capture up to 80% of the risk reduction benefits of a fully hedged approach, while potentially securing steadier performance, regardless of exchange rate fluctuations. With the launch of these new funds, investors can now easily add tax-efficient, neutral positioning at the core of their international equity portfolios that is neither actively bullish nor bearish on the direction of the U.S. dollar or foreign currencies.”

Follow me on Twitter @DPylypczak.

Disclosure: No positions at time of writing.

» Popular Pages

  • Tickers
  • Articles

Feb 03

Main Management Market Note: February 3, 2023

Feb 03

SPYI, a High-Income ETF Within Equities, Up 10%

Feb 03

Navigating Exchange FOMO for Advisors

Feb 03

In 2022, Main Supply of EU Electricity Was Renewable

Feb 03

VettaFi’s ETF Rising Stars: January 2023

Feb 03

Big Tech Is No Longer Certain; Consider Active

Feb 03

Equal-Weight Cloud Computing ETF WCLD Hits Buy Signal

Feb 03

American Century's KORP, VALQ Hit 5-Year Mark

Feb 03

Bitcoin Opens 2023 Strong, Outperforms Bonds

Feb 03

These 2 ETFs Show Growth Is Back in Style

QQQ

Invesco QQQ Trust

SPY

SPDR S&P 500 ETF Trust

VOO

Vanguard S&P 500 ETF

VGT

Vanguard Information...

SMH

VanEck Semiconductor ETF

XLK

Technology Select Sector SPDR...

VTI

Vanguard Total Stock Market...

SOXX

iShares Semiconductor ETF

BLOK

Amplify Transformational Data...

META

Roundhill Ball Metaverse ETF


Content continues below advertisement

Loading Articles...
Help & Info
  • Contact Us
Tools
  • ETF Screener
  • ETF Analyzer
  • Mutual Fund to ETF Converter
  • Head-To-Head ETF Comparison
  • ETF Country Exposure Tool
  • ETF Stock Exposure Tool
  • ETF Performance Visualizer
  • ETF Database Model Portfolios
  • ETF Database Realtime Ratings
  • ETF Database Pro
More Tools
  • ETF Launch Center
  • Financial Advisor & RIA Center
  • ETF Database RSS Feed
Explore ETFs
  • ETF News
  • ETF Picks of the Month
  • ETF Category Reports
  • Premium Articles
  • Alphabetical Listing of ETFs
  • Best ETFs
  • Browse ETFs by ETF Database Category
  • Browse ETFs by Index
  • Browse ETFs by Issuer
  • Compare ETFs
Legal
  • Terms of Use and Privacy Policy
  • © 2023 VettaFi LLC. All rights reserved.
Follow ETF Database
Follow ETF Database

Advertisement

Is Your Portfolio Positioned With Enough Global Exposure?

ETF Education Channel

How to Allocate Commodities in Portfolios

Tom LydonApr 26, 2022
2022-04-26

A long-running debate in asset allocation circles is how much of a portfolio an investor should...

Core Strategies Channel

Why ETFs Experience Limit Up/Down Protections

Karrie GordonMay 13, 2022
2022-05-13

In a digital age where information moves in milliseconds and millions of participants can transact...

}
X