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An ETF for Record-High German Stocks, Minus the Euro


The db X-trackers MSCI Germany Hedged Equity Fund (DBGR) provides a convenient way for U.S. investors to position for further strength in German stocks without worrying about potential weakness in the euro.

The ETF is designed to provide exposure to German equity markets, while at the same time mitigating exposure to fluctuations between the value of the U.S. dollar and the euro.

“Currency-hedged” ETFs have been growing more popular with U.S. investors worried that a strengthening U.S. dollar could lower their returns of their international equity funds. [iShares Heats Up Competition in Currency-Hedged ETF Space]

In German stocks, the DAX rose to a fresh all-time high on Monday.

Driven by strong exports, Germany’s economic recovery has been robust. That strength is fueling speculation — and pressure — about its role in assisting other European economies. In the end, perhaps the greatest challenge for the continent is not its equity markets, but the euro itself.

On Tuesday, Sept. 17, ETF Trends will host a webcast “Will Germany Remain Europe’s Engine of Growth?”

Join Tom Lydon, Editor and Publisher of ETF Trends, for a special webcast examining Europe’s recovery from the Great Recession, the outlook for the euro and strategies to help clients participate in today’s environment. Featured speakers, Dr. Heiko Peters, Deutsche Bank Economist, and Martin Kremenstein, Head of Passive Investments for Deutsche Asset & Wealth Management in the Americas, will discuss:

  • Where investors should look for optimal European exposure
  • How clients can effectively access the benefits of currency hedging
  • Best practices for incorporating currency-hedged strategies

Financial professionals can register for the webcast here. Accepted for One hour of CFP/CIMA CE Credit.

The opinions and forecasts expressed herein are solely those of John Spence, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.