Ahead of ECB Meeting, Hedge Euro ETF Back in the Spotlight

Said another way, HEDJ’s lethargy this year is an equity, not a currency issue, rendering comparisons with DXJ in 2013 limited because Japanese stocks enjoyed significant upside last year as the yen plunged. Eurozone equities have not responded in kind this year even with a weaker currency. [Currency Hedged ETFs: Lessons From Japan]

“So HEDJ is working exactly the way it should given how it is constructed and using HEDJ to get long European stocks and a weaker EUR is correct instrument for that view,” said Azous. “In the end, the difference between HEDJ and DXJ is simply stock performance, not the currency.”

Investors have not been deterred by HEDJ not being an identical 2014 sequel to DXJ. The ETF has added over $3.3 billion in new assets this year, a total surpassed by just nine other ETFs. HEDJ entered Monday as a $4.1 billion ETF after joining the $1 billion club in April. [These ETFs Have Doubled in Size]

WisdomTree Europe Hedged Equity Fund