IHDG’s strong dollar exposure looks likes this: A 19.6% weight to the U.K., home to British pound and where interest rate hikes may not come as early as previously expected. That is followed by a combined weight of 31% to Eurozone nations and an almost 13% weight to Switzerland, which pegs its franc to the weakening euro. [Euro Hedged ETF is Winning]
Then there is the combined 16.5% weight to Australia and Japan, two countries that are home to accomodative central banks with no signs of higher interest rates on the horizon.
IHDG’s Australia exposure is significant on the dividend growth front because payouts there doubled last from 2012 levels. The U.K., the ETF’s largest country weight, is the largest developed world dividend payer after the U.S. while Switzerland’s market tilt toward consumer staples and health care firms ensures steady, growing dividends.
WisdomTree International Hedged Dividend Growth Fund
Tom Lydon’s clients own shares of EFA.