New ETFs Could Start a Currency Hedged Fee War

HGJP, the ProShares currency hedged Japan offering, enters a crowded field of yen hedged ETFs. However, the three established ETFs in this group charge either 0.48% or 0.45% per year, well above HGJP’s 0.23% annual fee.

“HGJP is designed to match the performance of the FTSE Japan 100% Hedged to USD Index, a free-float-adjusted and market-cap-weighted index comprising Japanese large- and mid-cap stocks,” according to ProShares.

Other new entrants to the currency hedged ETF fray have also sought to compete with entrenched rivals on costs. For example, the PowerShares Europe Currency Hedged Low Volatility Portfolio (NYSEArca: FXEU), which debuted in May, charges 0.25% per year. The SPDR EURO STOXX 50 Currency Hedged ETF (NYSEArca: HFEZ), which debuted earlier this month, charges 0.32%.

HGEU Top Country Weights

Table Courtesy: ProShares