HEWG also includes a large weight to another iShares ETF, the iShares MSCI Germany ETF (NYSEArca: EWG), and a small position in forwards. The new iShares offering will be competing against the db X-trackers MSCI Germany Hedged Equity Fund (NYSEArca: DBGR) and he WisdomTree Germany Hedged Equity Fund (NasdaqGS: DXGE), which both track a currency hedged equity index.
HEFA includes a large position in the e iShares MSCI EAFE ETF (NYSEArca: EFA), along with currency forwards to hedge risk. The iShares fund will be up against the db X-trackers MSCI EAFE Hedged Equity Fund (NYSEArca: DBEF). The EAFE include developed Europe, Australasia and Far East countries, or developed markets outside of North America.
The space is heating up and investors will benefit from increased choice. For instance, due to the greater competition, Deutsche Asset & Wealth Management recently announced a fee cut on DBJP and DBGR to 0.45% from 0.50%. DBEF’s expense ratio will stay at 0.35%. In comparison, HEWJ has a 0.48% expense ratio, HEWG has a 0.53% expense ratio and HEFA comes at a 0.39%. [Deutsche Pares Fees on Germany, Japan Currency Hedged ETFs]
For more information on international markets, visit our global ETFs category.