Exchange traded products that invest in foreign stock markets but hedge their exposure to local currencies are a developing trend in the ETF business.
Deutsche Asset & Wealth Management on Monday said it plans to launch the db X-trackers MSCI Germany Hedged Equity Fund (NYSEArca: DBGR), effective May 31.
DBGR is the first ETF designed to provide investors direct exposure to the German equity markets while mitigating exposure to fluctuations between the value of the U.S. dollar and the euro, the firm said.
The Japanese stock rally and plunging yen have put currency-hedged ETFs such as WisdomTree Japan Hedged Equity Fund (NYSEArca: DXJ) and db X-trackers MSCI Japan Hedged Equity Fund (NYSEArca: DBJP) in focus this year. [Yen-Hedged Japan ETFs]