Deutsche Asset & Wealth Management head of ETF Strategy Dodd Kittsley joined ETF Trends Publisher Tom Lydon at the Morningstar ETF conference in Chicago to discuss the momentum gained by currency hedged exchange traded funds this year.
In a research paper published last month, Kittsley argued that currency hedged ETFs are currently underused by advisors and ETF strategists while noting “currency movements present an element of uncertainty for U.S. investors holding mutual funds and ETFs that invest in international equities.”
Over the 10 years ending in the second quarter of 2014, the hedged equivalents of the MSCI EAFE, MSCI Germany, MSCI Emerging Markets and MSCI All-County World indices were less volatile than their unhedged counterparts, according to DAWM data.
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