First, investors are starting to embrace non-Japan currency hedged single-country ETFs, though those affections have been limited to Germany funds, including products from Deutsche Asset & Wealth Management and WisdomTree. Year-to-date, the three U.S-listed euro hedged Germany ETFs have added over $1 billion in new assets combined, indicating investors are warming to non-Japan single-country currency hedged ETFs. [Mad Dash to Germany Hedged ETFs]
Second, BOK has room to further lower rates. The central bank has lowered rates by 75 basis points over the past 22 months and with the Bank of Japan committed to rampant monetary easing and a weak yen, BOK must defend South Korean exporters with its own accommodative monetary policy.
Emerging markets central banks have been among the most dedicated cutters of interest rates this year. The Bank of Thailand did so earlier this week. Prior to that, China and India lowered rates. Russia did so in January and some traders are betting another are cut from the controversial country is imminent. Indonesia and Turkey have also lowered rates.
WisdomTree Korea Hedged Equity Fund
