WisdomTree expanded its line of dynamic currency hedged exchange traded funds with an international quality dividend growth strategy for yield-minded investors who are wary of foreign exchange fluctuations.
WisdomTree has rolled out the WisdomTree Dynamic Currency Hedged International Quality Dividend Growth Fund (BATS: DHDG). DHDG has a net expense ratio of 0.48%.
DHDG will try to reflect the performance of the WisdomTree Dynamic Currency Hedged International Quality Dividend Growth Index, which is comprised of developed market, ex- U.S. and Canada, dividend growing companies with the best combined rank of growth and quality factors while diminishing exposure to currency risk with a fluctuating hedge ratio ranging from 0% to 100% on a monthly basis.
The growth factor is based on long-term earnings growth expectations. The quality factor is based on three-year historical averages for return on equity and return on assets. Lastly, companies are weighted based on annual cash dividends paid.[related_stories]
Unlike the more popular currency hedged ETF strategies, DHDG, will utilize a type of dynamic currency hedged methodology that will hedge currency fluctuations in the relative value of the foreign currency against the U.S. dollar, ranging from 0% to 100% hedge based on interest rate differentials, valuations and relative price momentum on the foreign currencies, compared to the USD.