S&P 500 ETFs Are Exposed to Currency Risks, Strong USD


“S&P 500 companies with higher global exposure are expected to report lower earnings growth and lower revenue growth relative to S&P 500 companies with lower global exposure for the second quarter,” Butters said.

Alternatively, investors may focus on mid- and small-cap companies that have less exposure to currency risks as they target domestic markets.

Related: Small- and Mid-Cap ETFs Light Up Investors

For instance, the iShares Core S&P Mid-Cap ETF (NYSEArca: IJH) and SPDR S&P MidCap 400 ETF (NYSEArca: MDY) both track the S&P MidCap 400 Index, and the Vanguard Mid-Cap ETF (NYSEArca: VO) provides an alternative as it follows the CRSP US Mid Cap Index.

Additionally, investors can also look at small-cap ETFs, including the iShares Core S&P Small-Cap ETF (NYSEArca: IJR), which follows the S&P SmallCap 600 Index, the Vanguard Small Cap ETF (NYSEArca: VB), which tracks the CRSP US Small Cap Index, and iShares Russell 2000 ETF (NYSEArca: IWM), which reflects the benchmark Russell 2000 Index.

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