Q: What’s the best way to get started if you want to take the currency hedged approach?
A: As I mentioned before, ETFs can be a good place to start. It may sound complicated but it’s not. For example, the iShares MSCI EMU ETF (HEZU) can potentially help you manage currency risk while maintaining exposure to developed countries in the European Monetary Union. Other examples include the iShares Currency Hedged MSCI Japan ETF (HEWJ), iShares Currency Hedged MSCI German ETF (HEWG), iShares Currency Hedged MSCI EAFE ETF (HEFA) and iShares Currency Hedged MSCI Emerging Markets ETF (HEEM).
Questions about currency and currency hedged? Ask them here. To learn more about how to hedge currency impact, click here.
Jane Leung is a Managing Director at BlackRock, focused on its iShares precision exposure ETF strategy.
Ann Hynek is Global Editor of The Blog, writing about investing from a millennial perspective. You can find more of her posts here.