iShares Tries Its Hand at Currency Hedged ETFs
BlackRock’s (BLK) iShares unit, the world’s largest ETF sponsor, is finally throwing its hat into the currency hedge ETF ring with the debut of three ETFs Tuesday.
The iShares Currency Hedged MSCI Japan ETF (HEWJ) , i Shares Currency Hedged MSCI Germany ETF (HEWG) and iShares Currency Hedged MSCI EAFE ETF (HEFA) commence trading today.
The iShares Currency Hedged MSCI EAFE ETF will have lowest annual fees among the new ETFs at 0.39% while HEWG, the Germany offering, will charge 0.53% per year. HEWJ will charge 0.48%, slight below the 0.5% charge by the db X-trackers MSCI Japan Hedged Equity Fund (DBJP) and the same as the annual fee on the WisdomTree Japan Hedged Equity Fund (DXJ) . DXJ is by far the largest currency hedged ETF with $12.2 billion in assets under management. [Slumping Yen Boosts These ETFs]
With all three new ETFs, iShares will be competing with existing products from Deutsche Bank, WisdomTree or both. Deutsche Asset & Wealth Management, the exchange traded funds unit of German banking giant Deutsche Bank offers 11 currency hedged ETFs after expanding its lineup by three last month. [Deutsche Expands Currency Hedged Lineup]
In addition to DBJP, with which the iShares Currency Hedged MSCI Japan ETF will direcly compete, Deutsche sponsors the db X-trackers MSCI Germany Hedged Equity Fund (DBGR) and the db X-trackers MSCI EAFE Hedged Equity Fund (DBEF).
WisdomTree offers six currency hedged ETFs, including DXJ. That lineup also includes the WisdomTree Germany Hedged Equity Fund (DXGE).
New York-based WisdomTree has also filed plans for five sector equivalents of DXJ. [WisdomTree Eyes DXJ Sector Plays]
ETF Trends editorial team contributed to this post.
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