FYI: Ned Davis Research is backtracking a bit from aspects of a recent report about the Wisdom Tree Europe Hedged Equity (HEDJ), this year’s most popular exchange-traded fund by new assets.
Quick backgrounder: Currency-hedged ETFs hold foreign stocks and at the same time employ derivatives to negate currency swings. The idea is to give ETF investors in the U.S. (who make purchases using dollars) a return that closely mirrors what European investors (who buy stocks in euros) get on the Continent.
Regards,
Ted
http://blogs.barrons.com/focusonfunds/2015/05/01/ned-davis-reseach-clarifies-views-on-hedged-europe-etf/tab/print/
