Related: Why Consider a Currency Hedged Strategy with International ETF Exposure
The $7 billion DBEF holds 942 stocks. Foreign exchange currency fluctuations are a significant driver of international investment risks, but it is one factor that investors can get a handle on. According to Deutsche Asset Management, from 1973 through 2016, leaving in currency exposure to an MSCI EAFE investment resulted in volatility on average 2.7 percentage points higher 91% of the time.
DBEF allocates almost 21% of its weight to financial services stocks with the industrial and consumer discretionary sectors combining for over 26% of the fund’s weight.
Japan and the U.K. combine for almost 42% of DBEF’s geographic exposure with France and Germany combining for another 20%.
For more information on the currency hedging strategy, visit our currency-hedged ETFs category.