Tag Archives: Carolyn Cui

ETFs To Hedge Against Strong Dollar-Currency Swinging

MarketsMuse.com profile of ETFs intended to provide global-macro-focused investors with a hedge against a continuing strong dollar and currency swings is courtesy of below extract from Mar 20 WSJ column by reporter Carolyn Cui.

Exchange-traded funds that protect against currency swings are attracting U.S. investors concerned that the strong dollar will erode their gains.

Currency-hedged ETFs have more than doubled their assets this year to $50.3 billion, largely thanks to strong inflows of $21.6 billion, according to data tracker ETF.com. Firms that offer the funds—including WisdomTree Investments and Deutsche Bank—use derivatives to offset the effects of currency swings, which they say could cause unintended volatility for investors and even hurt their returns in periods of dollar strength. Continue reading