That has not been the case this year as AUD/USD is higher, but any material weakness for the Aussie combined with ongoing retrenchment in the euro and yen would be enough for DBEF to ward off pound strength and build on the all-time the ETF made Thursday. [Currency Hedged ETFs Gain Favor]

Investors have shown a willingness to bet on DBEF. The ETF has $572.3 million in assets under management, $294.4 million of which has come into the fund this year.

db X-trackers MSCI EAFE Hedged Equity Fund

Tom Lydon’s clients own shares of EFA and HEDJ.