Related: International ETF Exposure That Neutralizes Currency Risks

IndexIQ research has shown that a 50% currency hedged approach can reduce the potential risk of misreading extreme currency movements in either direction and can also have a dampening effect on volatility, which may help investors capture any further upside potential while hedging against downside risks associated with harmful currency moves.

“International equities play a natural role in a diversified portfolio. But, with foreign exposure, comes currency risk. For investors that either don’t have a strong view on currency or are concerned about making the wrong currency bet, a 50% hedged solution gives 100% of the international equity exposure, with only 50% of the currency exposure — providing the potential to smooth the ride of currency volatility. IndexIQ’s suite of currency hedged ETFs offers a static 50% currency hedge that never has to be lifted or adjusted. It’s a tax-efficient, neutral position that is neither actively bullish nor bearish on the direction of the U.S. dollar or foreign currencies,” according to IndexIQ.

Financial advisors who are interested in learning more about currency-hedged international strategies can register for the Wednesday, November 8 webcast here.

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