For example, the Deutsche X-trackers MSCI Germany Hedged Equity Fund (NYSEArca: DBGR) has added over $163 million in new assets, helping bring the ETF’s AUM total to $216.4 million. Germany is one of several developed markets where benchmark equity indexes yield more than 10-year government bonds. [Big Inflows to Germany Hedged ETFs]
Last month, the Bank of Korea, South Korea’s central bank, joined the spate of global central banks lowering interest rates when it pared borrowing costs to a record low of 1.75%. That has helped the Deutsche X-trackers MSCI South Korea Hedged Equity ETF (NYSEArca: DBKO) added over $116 million of its $129.7 million in assets this year. [South Korea Hedged ETFs in Focus]
“Meanwhile, the European Central Bank (ECB) and Bank of Japan (BOJ) continue to engage in unprecedented accommodative measures. Both central banks are continuing with quantitative easing (QE) programs and maintaining low benchmark interest rates. During the last two U.S. dollar bull cycles, the dollar peaked only after the cycle top in U.S. rates. With the Fed still yet to hike, calling an end to the current cycle seems premature,” adds Kittsley.
Deutsche X-Trackers MSCI Europe Hedged Equity ETF