One of the big stories of 2015 in the ETF industry has been the impact of currency volatility and the suite of products it has spawned.
Heading into the second-half of the year there were currency-hedged ETF offerings but broad awareness was near non-existent. No one is to blame for that – advisors haven’t been compelled to focus on currency with the way the markets have gone in the current long-term bull market.
Then the end of August hit and consistent dollar strength began to show its pervasiveness. The result has been a sprint by ETF issuers to bring currency-hedged products to market so that investors can remove the risk that many will become all to familiar with when reviewing their 2015 unhedged returns.
Tom recently caught up with Marie Dzanis, Head of Distribution for Northern Trust and their FlexShares unit, about this phenomenon. Marie is quick to point out that the great thing about this evolution is choice. Investors continue to receive the benefit of options when it comes to their exposure and FlexShares quickly produced currency-hedged ETF alternatives to their already intact strategies.
Is this something that investors must head for the foreseeable future or a passing phase?
Check out their chat below to see!