As U.S. markets look pricier and begin to slow down, international markets and related exchange traded funds look much more attractive and are beginning to shine.
On the upcoming webcast, 2017 Mid-Year Outlook and ETF Strategy Review, Robert Bush, ETF Strategist for Deutsche Asset Management, Phil Poole, Managing Director at Deutsche Asset Management, and Thomas Bouchard, Director and Portfolio Manager for High Yield Strategies at Deutsche Asset Management, will outline their mid-year global economic perspective and consider ETF strategies to enhance and diversify their portfolios in anticipation to changes ahead.
For instance, investors may consider the the Deutsche X-trackers FTSE Developed ex US Comprehensive Factor ETF (NYSEArca: DEEF) or the Deutsche X-trackers FTSE Emerging Comprehensive Factor ETF (NYSEArca: DEMG) to gain exposure to international markets with a factor-focused strategy that may participate on any upside potential and limit drawdowns to improve risk-adjusted returns. The underlying indices combine five single factors into a multi-factor strategy, including value, size, momentum, low volatility and quality.
Investors can turn to currency-hedged ETFs to limit foreign exchange currency risks. For example, the Deutsche X-trackers MSCI EAFE Hedged Equity ETF (NYSEArca: DBEF) tracks developed Europe, Australasia and Far East countries and hedges against depreciation in related currencies.
Investors can also track other various market segments in the international space while hedging against currency risks through currency-hedged ETF strategies. For instance, the Deutsche X-trackers MSCI All World ex US Hedged Equity ETF (NYSEArca: DBAW) provides broad market exposure by following a market cap-weighted index of international stocks, excluding U.S. exposure and hedging against depreciation in the underlying currencies against the U.S. dollar. Additionally, the Deutsche X-trackers MSCI Emerging Markets Hedged Equity Fund (NYSEArca: DBEM) targets the emerging markets.
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.