|Bid||31.25 x 41800|
|Ask||33.86 x 45900|
|Day's Range||32.15 - 32.28|
|52 Week Range||27.07 - 32.96|
|PE Ratio (TTM)||N/A|
|Beta (3Y Monthly)||0.70|
|Expense Ratio (net)||0.35%|
Currency hedging mitigates the additional volatility that exchange rates impose on foreign assets. It reviews the fundamentals of currency hedging, explores the extra costs, and outlines a framework that investors can use to aid in their decision to choose a currency hedged fund. When investors purchase a foreign investment, they must first convert their home currency to foreign currency.
Investors who are looking into international stocks should be wary of the potential negative effects of a strengthening U.S. dollar on their investments and may consider currency-hedged ETF strategies to limit the foreign exchange risks. "We really want people to think about this strategically and long-term that being hedged makes a lot of sense," Luke Oliver, Managing Director and Head of Capital Markets for DWS, said at the 2018 Morningstar Investment Conference. DWS has maintained a belief that the U.S. dollar could strengthen based on their call that interest rates will rise as the U.S. Federal Reserve tightens its monetary policy and weaker data out of foreign markets that suggest possible easing or at the very least not tightening.
No doubt the first half of 2018 presented its challenges, but there are five ETFs to play for the second half of 2018. CSML tracks the results of the Nasdaq Chaikin Power US Small Cap Index utilizing multi-factor model known as The Chaikin Power Gauge. This proprietary tool uses four factors--value, growth, technical, and sentiment--to find winners and thus far, the performance proves their model works: up 2.03 percent year-to-date and 16.33 percent the past year. 2.
With the U.S. dollar strengthening against its foreign counterparts, international stock investors should consider currency hedged exchange traded fund strategies to limit further foreign exchange risks. Hedging some or all of an international portfolio is simple. Not hedging is simply taking a position against the U.S. Dollar," Luke Oliver, Head of U.S. ETF Capital Markets, said in a research note.
Currency-hedging won't always help performance and could hurt tax efficiency, but it should consistently reduce volatility. Its diversified portfolio captures a large chunk of the available foreign market capitalization while also hedging currency risk. The fund tracks the MSCI EAFE 100% Hedged to USD Index, which covers stocks from the MSCI EAFE Index while hedging currency risk.