| The headline-making trade of 2015—buying into currency-hedged ETFs WisdomTree European Hedged Equity ETF and the WisdomTree Japan Hedged Equity ETF —is proving to be less than a foolproof idea this year. The funds have been underperforming their unhedged counterparts year-to-date because the multiyear rise of the U.S. dollar has waned this year.
Returns on international equity funds come primarily from two sources: the price movement of underlying securities, and the impact of local currency fluctuations against the dollar. Currency-hedged ETFs take that currency exposure out of the equation...............................................Full Article: Source
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