Alternatively, ETF investors may consider alternative options that take a more neutral view on foreign currency movements. For instance, IndexIQ has a handful of 50% hedged/50% unhedged option, including the IQ 50 Percent Hedged FTSE International ETF (NYSEArca: HFXI), IQ 50 Percent Hedged FTSE Europe ETF (NYSEArca: HFXE) and IQ 50 Percent Hedged FTSE Japan ETF (NYS Arca: HFXJ). All three funds have approximately half their currency exposure of the securities in the underlying index hedged against the U.S. dollar on a monthly basis.

According to IndexIQ research, a 50% currency hedged approach can reduce the potential risk of misreading extreme currency movements in either direction and can also diminish volatility.

Furthermore, ETF investors may also look to some relatively new dynamic or adaptive currency-hedged international stock strategies. For instance, BlackRock offers the iShares Adaptive Currency Hedged MSCI Japan ETF (BATS: DEWJ), iShares Adaptive Currency Hedged MSCI EAFE ETF (BATS: DEFA) and iShares Adaptive Currency Hedged MSCI Eurozone ETF (BATS: DEZU). The Adaptive Currency Hedged ETFs may shift from a 0% unhedged currency exposure to a 100% fully hedged, depending on differences in interest rates, relative valuations, currency momentum and currency volatility.

Related: 35 A+ Currency ETFs to Track Global Forex Moves

WisdomTree also offers the WisdomTree Dynamic Currency Hedged Europe Equity Fund (BATS: DDEZ), WisdomTree Dynamic Currency Hedged Japan Equity Fund (BATS: DDJP), WisdomTree Dynamic Currency Hedged International Equity Fund (BATS: DDWM) and WisdomTree Dynamic Currency Hedged International SmallCap Equity Fund (BATS: DDLS). The four Dynamic Currency Hedged Equity Funds will hedge currency fluctuations in the relative value of the foreign currency against the USD, ranging from 0% to 100% hedge based on interest rate differentials, valuations and relative price momentum of the foreign currencies compared to the USD.

For more news and strategy on the Currency ETF market, visit our Currency category.