In a new research report released this week, Dodd Kittsley, head of ETF strategy at Deutsche Asset & Wealth Management, created an in-depth perspective on the effects of currency hedging.
This joint effort with Abby Woodham, ETF strategist at DWAM, posed that investors with foreign stock exposure had become accustomed to a tailwind from a falling U.S. dollar for years.
Nevertheless, the tide appears to have turned, and now future overseas investment decisions must be made with both currency and stock expectations in mind.
Currency Exposure And International Equities
The report noted that "Currency exposure was a significant detractor to the return of international equities in 2014. Over the course of the year, the MSCI EAFE Index returned 5.9 percent in local currency ...
/www.benzinga.com/etfs/specialty-etfs/15/04/5406923/building-a-currency-hedging-framework-using-etfs alt=Building A Currency-Hedging Framework Using ETFs>Full story available on Benzinga.com
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