Kittsley Talks Currency Hedged ETF Lessons

Deutsche Asset & Wealth Management head of ETF Strategy Dodd Kittsley joined ETF Trends Publisher Tom Lydon at the Inside ETFs conference in Hollywood, Fla. to discuss lessons learned from currency hedged ETFs and the outlook for this fast-growing segment of the ETF space.

“What we saw in 2014 were respectable returns in developed markets and emerging markets that were obliterated and actually converted into losses due to the strength of the U.S. dollar,” said Kittsley.

While the dollar was an exceptional performer last year, Kittsley notes that what central banks in Japan, Europe and other developed markets are doing have long-lasting effects.

“Historically, these trends last eight years or longer and we’re only in the second or third year of dollar strength,” said Kittsley.

Deutsche Asset& Wealth Management is one of the largest providers of currency hedged ETFs. The Deutsche X-trackers MSCI EAFE Hedged Equity ETF (NYSEArca: DBEF) has added nearly $2.6 billion in new assets this year, a total surpassed by just three other ETFs.

Watch the video below to see the full interview.

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