WisdomTree Europe Hedged Equity Fund goes live
Exchange-traded fund sponsor WisdomTree has implemented the previously announced changes to the WisdomTree International Hedged Equity Fund.
The new hedged currency strategy aims to provide exposure to European dividend-paying exporters, while hedging out the movements of the euro relative to the US dollar.
The fund has adopted a more focused investment strategy: providing exposure to an export-oriented European portfolio of dividend-paying equities that hedges exposure to movements of a singular currency, the euro, relative to the US dollar.
Previously, the fund provided exposure to equities across Europe, Australasia, and the Far East, while neutralising the multiple currency movements in these regions versus the dollar.
Luciano Siracusano (pictured), WisdomTree chief investment strategist, says: “Concerns over the future of the euro may cause investors to reevaluate their exposure to Europe, though current valuations for European stocks remain compelling based on historically low P/E ratios1 and high dividend yield differentials compared to the US. In fact, even in a declining euro environment, we believe many global companies headquartered in Europe will continue to be competitive and have the potential to generate substantial profits. By providing exposure to European stocks while neutralising the downside for US investors that would be inflicted by a weakening euro, we believe HEDJ can present a precise and thoughtful alternative to un-hedged portfolios of European stocks.”
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