Product review: WisdomTree currency hedged ETF

These new share classes will be available through WisdomTree’s Japan equity ETF, Europe equity ETF and German equity ETF ranges.

The ETFs are now being offered as hedged as well as unhedged currency ETFs with more choice for European investors.

All three ETFs are designed to provide exposure to European investors across various geographies. The WisdomTree Japan equity that was originally hedged in US dollar offers exposure to the Japanese equity market and is now available in sterling.

The Chart shows the performance of the yen against the dollar over a one-year period.

The second ETF, Wisdom Tree Europe equity, was earlier available as a US dollar-hedged ETF but will now also be available in sterling. It offers broad exposure to eurozone equities, while hedging the currency fluctuations between the value of the euro to the US dollar or sterling.

Finally, the third ETF is the Germany equity, which will hedge currency fluctuations between sterling and euro.

Since their original launch, the three funds have accumulated around $135m (£88.7m) in assets.

www.wisdomtree.com

Comment:

While there are some cautious investors, many like to take higher risks in order to fetch better returns. WisdomTree’s addition of new share classes to its existing portfolio provides a range of flexibility and choice to investors.

The flexibility to switch between share classes comes with benefits such as reduced costs, increased liquidity and greater choice.

The new share classes have been added keeping in mind the underlying macro theme dominating the markets relating to quantitative easing in both Japan and the eurozone. By hedging exposure to currency weakness such as in the

euro or the yen in their respective ETFs, investors could benefit from the bullish sentiment in these equity markets.

These funds are available on the London Stock Exchange and come under WisdomTree’s already established and well-known.