First Trust has launched a new actively managed ETF on Toronto Stock Exchange which aims to provide investors with structured, risk-controlled exposure to the US equity market. The First Trust Cboe Vest US Equity Buffer ETF – August (AUGB.F CN) offers access to the bellwether S&P 500 Index while protecting the fund against potential losses up to a predetermined amount. Karl Cheong, Head of Distribution at First Trust Canada, commented, We believe this ETF will be effective for those seeking equity-like upside potential for their clients, with a level of downside protection.”

By Christopher Dhanraj, Head of iShares Investment Strategy, BlackRock.

With the dollar maintaining its strength versus other currencies, the question of whether to hedge that currency effect remains an important one for US investors considering international exposures.

French banking and investments giant BNP Paribas has launched euro-hedged share classes for six of its commodity ETCs listed on Xetra. The ETCs use futures contracts to provide exposure to nickel, copper, natural gas, WTI crude oil, Brent crude oil, and a basket of industrial metals. Each is linked to a ‘RICI Enhanced’ index, part of the Rogers International Commodity Index (RICI) stable of indices created by well-known commodities investor Jim Rogers.

BlackRock has rolled out three new share classes on SIX Swiss Exchange, providing access to different segments of the EUR and USD corporate bond markets while hedging currency exposure relative to the Swiss franc.

BlackRock has launched GBP-hedged share classes for two of its sustainability-themed fixed income ETFs listed in Europe. The funds, which are linked to Bloomberg Barclays indices with SRI screening from MSCI, provide exposure to euro or US dollar-denominated corporate bonds from issuers with acceptable environmental, social, and governance (ESG) profiles.

French banking and investments giant BNP Paribas has launched a new currency-hedged share class for its BNP Paribas RICI Enhanced Energy Index ETC. The BNP Paribas RICI Enhanced Energy Index EUR-hedged ETC (B4NX GR) has been listed on Xetra and provides exposure to a basket of energy commodities while hedging currency exposure relative to the euro.

Invesco has launched new ETF share classes on London Stock Exchange and SIX Swiss Exchange, providing access to different segments of the US Treasury bond market while hedging currency exposure to pound sterling. They are the Invesco US Treasury Bond 1-3 Year UCITS ETF GBP Hedged (T3GB LN, T3GB SW) and the Invesco US Treasury Bond UCITS ETF GBP Hedged (TRGB LN, TRGB SW).

JP Morgan Asset Management has launched a pound sterling-hedged share class for its European-domiciled US Treasury bond ETF. The JPM BetaBuilders US Treasury Bond UCITS ETF – GBP Hedged (BBTP LN) has listed on London Stock Exchange and comes with a total expense ratio (TER) of 0.10%, the same price tag as its unhedged counterpart. Mike Bell, Global Market Strategist at JP Morgan Asset Management, said, “For UK investors thinking about incorporating US government bond exposure, they may want to consider hedging the currency risk, given the uncertainty around the outlook for sterling against the dollar.”

WisdomTree has made changes to two dynamic currency-hedged ETFs that provide exposure to the equity markets of Europe and Japan. Effective immediately, the WisdomTree Dynamic Currency Hedged Europe Equity Fund (DDEZ US) and WisdomTree Dynamic Currency Hedged Japan Equity Fund (DDJP US) will switch from passive to active funds and will adopt a multifactor security selection approach. “WisdomTree’s Modern Alpha approach to multifactor investing is designed to provide higher alpha potential with lower volatility and all the benefits of the ETF structure,” said Jeremy Schwartz, Global Head of Research at WisdomTree.

UBS Asset Management has launched the UBS Bloomberg Barclays TIPS 10+ UCITS (hedged to GBP) A-dis on London Stock Exchange (T10G LN) and SIX Swiss Exchange (TIP10G SW). The ETF provides sterling-hedged exposure to long-duration US Treasury Inflation Protected Securities (TIPS). Andrew Walsh, Head of Passive and ETF Specialist Sales UK & Ireland, said: “We are very pleased to expand our fixed income offering to include a fund which helps our clients achieve a targeted exposure to long-duration US TIPS coupled with the benefits of GBP-hedging.”