The asset-gathering proficiency of currency hedged exchange traded funds this year has been duly noted.
In the first quarter, ETFs and other exchange traded products hauled in a combined $97.2 billion, nearly $27 billion of which went to currency hedged ETFs. To put that number into context, the $26.8 billion investors allocated to currency hedged ETFs in the January through March period more than doubled in just a matter of days. On March 9, year-to-date inflows to currency hedged ETFs were $12 billion. [ETFs Add $36.1B in March]
So it is not surprising that four of the top 10 asset-gathering ETFs this year, including the top two, are currency hedged funds. Nor is it surprising that on a percentage basis, some of these funds have experienced asset growth that can accurately be deemed “exponential.” [Currency Hedged ETF Packs on Assets]
That group includes the Deutsche X-trackers MSCI EAFE Hedged Equity ETF (NYSEArca: DBEF). Investors have allocated $6.65 billion to DBEF, a currency hedged play on the popular MSCI EAFE Index, this year. Only the WisdomTree Europe Hedged Equity Fund (NYSEArca: HEDJ) has seen larger inflows.
DBEF’s asset growth deserves to be put into context. Just over a month ago, we highlighted the ETF as a prime beneficiary of the currency hedge phenomenon. At the time, DBEF had $6 billion in assets under management. [Momentum for Currency Hedged ETFs]
Deutsche Asset & Wealth Management (Deutsche AWM), DBEF’s issuer, trumpets DBEF’s ascent to $8 billion on its homepage, but jump over to DBEF’s hompeage and it is clear that the ETF is home to over $9 billion in assets.