IQ FTSE International Equity Currency Neutral ETF (HFXI US) – Investment Proposition

IQ FTSE International Equity Currency Neutral ETF (HFXI) delivers broad developed-markets equity exposure outside North America while maintaining a systematic, partial currency hedge to the U.S. dollar. The strategy follows a transparent, market-cap-based process and applies an ongoing hedge to a portion of foreign-currency exposure, aiming to moderate exchange-rate swings without fully eliminating currency effects. Returns are primarily driven by global earnings and valuations across Europe and the Pacific region, with dividend income contributing depending on market yields; factor exposures generally reflect large- and mid-cap blend characteristics. The partial hedge can dampen currency-driven volatility when the dollar is strong and preserve some diversification when the dollar weakens, which may be helpful across varying phases of the global cycle. In portfolios, HFXI can function as a core international equity sleeve, a smoother ride alternative to unhedged or fully hedged allocations, or a tactical overlay for investors who prefer not to express a binary currency view. Typical users include asset allocators standardizing currency policy and outcome-oriented managers seeking consistent international beta. A key risk to monitor is hedge-implementation variance, which may introduce tracking differences versus unhedged comparables.

To explore HFXI in more depth, visit our ETF analytics platform for institutional-grade insights — including performance and risk metrics, correlations, sensitivities, and factor exposure: https://www.etfstrategy.com/etf/HFXI_US