| Investors plowed $34 billion was into currency-hedged strategies in February. The biggest, the WisdomTree Europe Hedged Equity Fund (HEDJ), has garnered more than $5.5 billion year to date. What are these strategies and why the sudden interest?
At its core, a currency-hedged strategy is, as the name implies, a strategy that seeks to provide exposure to an asset class while hedging out any foreign currency fluctuations. For why currency exchange rates are important, consider the actions of the Swiss National Bank (SNB) on January 15, implementing a negative interest rate policy and removing the floor under the franc against the euro...............................................Full Article: Source
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