DBGR is up 11.3% year-to-date, putting the ETF ahead of the rival iShares Currency Hedged MSCI Germany ETF (NYSEArca: HEWG) by over 100 basis points. DBGR has also delivered nearly triple the returns of the unhedged iShares MSCI Germany ETF (NYSEArca: EWG).
Due to a raft of major monetary easing by developed market central banks from Brussels to Tokyo over the past several years, currency hedged ETFs are exponentially growing. These ETFs have about $31.5 billion in assets, up nearly five-fold from 2011, according to Reuters.
However, excluding Japan funds, many single-country currency hedged offerings have struggled to attract wide followings. DBGR is on course to change that. The ETF doubled in size last year and has added almost $18 million of its $60.4 million in assets under management this year. [Different ETF Avenues to Germany]
Deutsche X-trackers MSCI Germany Hedged Equity ETF
Tom Lydon’s clients own shares of HEDJ.