Looking to capitalize on the success of the WisdomTree Japan Hedged Equity Fund (NYSEArca: DXJ), ETF issuer WisdomTree (NasdaqGM: WETF) again tested the currency hedged waters last week with the introduction of two ETFs.
One of those new ETFs is the WisdomTree Japan Hedged SmallCap Equity Fund (NYSEArca: DXJS), small-cap equivalent of the wildly popular DXJ. However, it may be WisdomTree’s other new ETF that is in the right place at the right time, something not all new funds can lay claim to. [DXJ Gets a Small-Cap Cousin]
That other new ETF is the WisdomTree U.K. Hedged Equity Fund (NYSEArca: DXPS), the first equity-based ETF that offers a pure hedge against fluctuations in the British pound/U.S. dollar currency pair. Not all new ETFs should be treated like a hot a stock IPO, meaning investors do not need to rush in on the first day or week of trading. In fact, some investors like to wait for new ETFs to gain decent volume and assets under management tallies before jumping in. [Global ETFs Minus the Currency Risk]
The Bank of England might be telling investors it is time to give DXPS a look despite the fund being just a week old. On Thursday, the central bank said economic data over the past few months was consistent with the recovery set out by the bank in its May inflation report, but warned that the “significant upward movement” in bond yields would weigh on the outlook for growth, according to Investing.com.
What was seen as the BoE opening the door to more monetary easing was confirmed by Goldman Sachs, which said “More unconventional easing is likely in the U.K.,” reports Katy Barnato for CNBC.