That is a stellar run for an ETF that just over two years ago was not focused on the Eurozone, nor was it on many investors’ radars. WisdomTree reconfigured the ETF in the third quarter of 2012 from a multi-country, multi-currency fund to its current form, a move that combined with euro weakness has helped HEDJ rapidly grow its AUM tally.
Countries receiving double-digit weights in HEDJ are Germany, France, Spain and the Netherlands. That quartet combines for over 85% of the ETF’s weight. The ETF’s largest sector weights are consumer staples, industrials, consumer discretionary and financial services.
“As of October 31, 2014 The WisdomTree Europe Hedged Equity Fund (HEDJ) was ranked the number one fund, by MorningStar, out of 109 Europe-focused open-ended (OE) mutual funds and exchange-traded funds (ETFs) over the past year based on total return.1 HEDJ is alone at the top, in our view illustrating the impact that a depreciating euro has had on unhedged investment options within this category. Given the policies being discussed and employed by the European Central Bank (ECB), it is hard to imagine a stronger euro compared to the U.S. dollar in the near future,” according to a research note published by WisdomTree earlier this week.
WisdomTree Europe Hedged Equity Fund