With the U.S. dollar surging this year, the allure of currency hedged ETFs for ex-U.S. developed markets exposure has soared, benefiting ETFs such as the Deutsche X-Trackers MSCI Europe Hedged Equity ETF (NYSEArca: DBEU) and the Deutsche X-trackers MSCI EAFE Hedged Equity Fund (NYSEArca: DBEF).
Not only have DBEU and DBEF handily outperformed unhedged Europe and EAFE equivalents, the two are among the fastest-growing ETFs in the U.S. DBEF entered 2014 with about $313 million in assets under management. Today, the ETF has over $1.4 billion in assets under management. [Falling Foreign Currencies Lift This ETF]
DBEZ Sector Weights
Chart Courtesy: DAWM