Another familiar catalyst has bolstered MSCI this year: The currency hedged phenomenon. Four of this year’s top 10 asset-gathering ETFs are currency hedged funds and two of those four – the Deutsche X-trackers MSCI EAFE Hedged Equity ETF (NYSEArca: DBEF) and the iShares Currency Hedged MSCI EAFE ETF (NYSEArca: HEFA) – follow MSCI indexes.
Several other fast-growing, well-known currency hedged ETFs track MSCI indexes, including the Deutsche X-Trackers MSCI Europe Hedged Equity ETF (NYSEArca: DBEU), Deutsche X-trackers MSCI Germany Hedged Equity Fund (NYSEArca: DBGR), Deutsche X-trackers MSCI Japan Hedged Equity ETF (NYSEArca: DBJP) and the iShares Currency Hedged MSCI Germany ETF (NYSEArca: HEWG).
Investors have added nearly $3.6 billion combined to those ETFs this year. Overall, five of the top 10 asset gathering ETFs on a year-to-date basis track MSCI indexes. [More to Come for Currency Hedged ETFs]
Deutsche X-trackers MSCI EAFE Hedged Equity ETF
Tom Lydon’s clients own shares of EEM and EFA.