There has recently been considerable chatter that the Federal Reserve will push off raising interest rates until next year, in turn decimating the long dollar trade. One obvious result of dollar retrenchment, if it arrives in earnest, would be punishment for currency hedged exchange traded funds.
That is the mainstream point of view, but other market observers believe the dollar still has room to run. Additionally, the theme of developed markets dividend-paying stocks sporting higher yields than their U.S. equivalents is alive and well, highlighting the potential benefits of an ETF like the WisdomTree International Hedged Dividend Growth Fund (NYSE: IHDG).
IHDG tracks the WisdomTree International Hedged Dividend Growth Index (WTIDGH), a benchmark that when explained simply, can be interpreted as a dividend growth answer to widely followed EAFE indexes. Neither IHDG's currency hedge nor its dividend growth emphasis should ...
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