That is to say that while the currency hedged ETF market could be accepting of new entrants, it is at this point in the U.S. dominated by Deutsche Bank (NYSE: DB) and WisomTree (NasdaqGS: WETF).
“A strong dollar is prompting U.S. investors to buy hedged ETFs. Typically, currency-hedged ETFs protects the underlying international equity exposure against a falling foreign currency such as the euro or yen,” according to Reuters.
Not all currency hedged ETFs have been widely embraced by investors. For example, hedged emerging markets, Germany and U.K. ETFs have not taken off in the same fashion as funds such as DBEU, DBEF and DXJ.
The most recent currency hedged ETF to come to market in the U.S. is the Deutsche X-trackers MSCI EMU Hedged Equity ETF (NYSEArca: DBEZ), which debuted in December.
ETF Trends editorial team contributed to this post.