Yield-seeking investors who are looking toward international markets may also consider a currency-hedged strategy to limit the negative effects of weakening foreign currencies or a strengthening U.S. dollar on their investment.
For example, the Deutsche X-trackers MSCI All World ex-US High Dividend Yield Hedged Equity ETF (NYSEArca: HDAW) is one such ETF. HDAW targets companies with higher-than-average dividend yields relative to their market-cap-weighted counterparts across both developed and emerging countries, excluding the U.S. Moreover, the ETF includes a currency hedge which helps negate the negative effects of weakening foreign currencies or a strengthening dollar on overseas returns.
For more focused exposure, the Deutsche X-trackers MSCI EAFE High Dividend Yield Hedged Equity ETF (NYSEArca: HDEF) tracks high dividend-yielding developed market stocks across Europe, Australasia and the Far East, and it hedges the currency risks as well.
Investors worried about continued devaluation in the euro currency but still want exposure to dividend-yielding stocks across the Eurozone may consider the Deutsche X-trackers MSCI Eurozone High Dividend Yield Hedged Equity ETF (NYSEArca:HDEZ).
The Deutsche X-trackers MSCI Emerging Markets High Dividend Yield Hedged Equity ETF (NYSEArca: HDEE) tracks high-yielding emerging market companies and also provides a currency-hedged option on its developing market exposure.
Financial advisors who are interested in learning more about Deutsche Asset Management’s outlook can register for the Thursday, July 27 webcast here.