Same goes for the two ETFs that provide hedged sterling exposure to U.K. equities, which have also recently been solid performers. [These ETFs Soar as British Stocks Rally]
While some have argued that long-term investors do not need to be overly concerned with currency fluctuations, DXJ and DBJP have already proven the utility of currency hedged exposure in portfolios.
Additionally, euro and sterling-hedged ETFs are not old ETFs and have endured extended periods of strength in those currencies. For example, DBGR is less than three years old and HEDJ was converted to a hedged euro ETF in the third quarter of 2012. The sterling hedged ETFs from WisdomTree and Deutsche Bank are an average of eight months old, proving that neither has traded in a period of sustained weakness for the British pound.
WisdomTree Europe Hedged Equity Fund
Tom Lydon’s clients own shares of HEDJ and SPY.