01.10.2015 - Currency-Hedged ETFs Targeting Countries With High Rates Can Be Dicey
Do you know what it costs to hedge currency in an exchange-traded fund? Currency-hedged ETFs, which aim to neutralize foreign currency exposure for U.S. investors who buy with dollars, are a hot trend this year. People thought investing in ETFs including the WisdomTree Europe Hedged Equity ETF (HEDJ) were layups give divergent monetary policy trends: everybody figured that the Federal Reserve was going to raise interest rates (good news for the dollar) at the same time that the European Central Bank and Bank of Japan would increase their easy-money polices (bad news for euro, yen but good for stocks in those countries)...............................................Full Article: Source
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