Lyxor has rolled out a euro-hedged share for its Lyxor MSCI World UCITS ETF on Borsa Italiana. The fund is linked to the well-known MSCI World Index which covers large- and mid-cap representation across 23 developed market countries including the US. The new share class (WLDH IM) hedges foreign currency risk relative to the euro on a monthly basis and comes with an expense ratio of 0.30%.
WisdomTree has introduced a new currency-hedged share class for the WisdomTree Enhanced Commodity UCITS ETF on SIX Swiss Exchange. The share class, which trades under the ticker COMS SW, mitigates currency risk between the underlying US dollar-denominated commodity futures contracts and the Swiss franc.
By Brian Manby, Investment Strategy Analyst at WisdomTree.
Over the past few years, many investors have avoided developed international equity markets. Anemic growth, disappointing economic data and geopolitical uncertainty blunted sentiment for most of the decade. Add Brexit, trade tensions with the US and an investable universe that’s structurally underweight the best-performing sector of most benchmarks (technology), and you see why some investors have been skeptical.
BlackRock has cross-listed the iShares JP Morgan ESG $ EM Bond UCITS ETF on SIX Swiss Exchange and added an additional share class on Xetra.
Lyxor has rolled out a euro-hedged share class for its Lyxor JPX-Nikkei 400 (DR) UCITS ETF on Xetra. The share class (JPNE GY) hedges currency risk between the Japanese yen and the euro on a daily basis.
State Street Global Advisors has introduced a currency-hedged share class for its SPDR Bloomberg Barclays Emerging Markets Local Bond UCITS ETF, offering exposure to local currency emerging markets debt while mitigating the effect of foreign exchange movements for euro-referenced investors. The new share class hedges international currency exposures relative to the euro on a monthly basis using one-month forward rates. It has listed on Xetra (SPFD GY) and Borsa Italiana (EMDE IM) and comes with an expense ratio of 0.60%.
BlackRock has introduced a new share class for the iShares China CNY Bond UCITS ETF providing currency-hedged exposure to renminbi-denominated government and policy bank bonds issued in China. The new share class, which hedges exchange rate risk between renminbi and the US dollar, trades on Euronext Amsterdam under the ticker CYBU NA.
Invesco has launched a currency-hedged share class for the PIMCO US Dollar Short Maturity Source UCITS ETF on London Stock Exchange. The new share class trades under the ticker MIST LN and hedges exposure between the US dollar and the share’s trading currency, pound sterling. The fund was one of the first actively managed ETFs to be listed in Europe and offers investors access to PIMCO’s global cash management expertise.
State Street Global Advisors (SSGA) has launched a new USD-hedged share class for the SPDR Bloomberg Barclays Global Aggregate Bond UCITS ETF on Deutsche Börse Xetra. The fund tracks the Bloomberg Barclays Global Aggregate Bond Index, providing diversified exposure to investment-grade bonds across multiple sectors and segments from both developed and emerging market issuers.
By Alejandro Saltiel, Associate Director of Modern Alpha, and Brian Manby, Investment Strategy Analyst, WisdomTree.
International equity markets have made headlines this year for all the wrong reasons. But just because lackluster performance and looming uncertainty have become the status quo in developed markets doesn’t mean investors need to acquiesce and hold on for the ride.