Currency hedged ETFs attracted nearly $27 billion in new assets in the first quarter, though DBUK and DXPS relative to their Japan and Germany counterparts. The two ETFs combine for just over $36 million in assets.
However, there are signs some investors are warming to the idea of betting on more downside for the pound with ETFs like DBUK and DXPS. For example, DBUK rose 0.4% last Friday on volume that was nearly seven times the daily average.
Importantly, DBUK and DXPS share something in common with their currency hedged Germany and Japan counterparts: Substantial out-performance of their unhedged rivals. DBUK and DXPS are up an average of 8.3% this year, an advantage of 500 basis points over the iShares MSCI United Kingdom ETF (NYSEArca: EWU).
Deutsche X-Trackers MSCI United Kingdom Hedged Equity ETF
