HEDJ - HEDJ: Solid Portfolio Without The Currency Risk

2024-06-18 18:00:00 ET

Summary

• International investing is challenging due to currency impact and lack of outperformance relative to the US.
• WisdomTree Europe Hedged Equity ETF (HEDJ) hedges against euro-dollar currency fluctuations, offering exposure to European equities without currency risk.
• The fund holds diversified companies like Stellantis NV and ASML Holding NV, with a value tilt, 3.33% dividend yield, and P/E of 10.40.

International investing is hard. Aside from the fact that it's been hard to generate outperformance relative to the US for over 15 years now, one has to consider the impact of currency movement throwing off expected returns. If you're a US-based investor, the weaker international currency is relative to the Dollar, the more that serves as a headwind against performance because of that very conversion hurting your allocation. So why take the currency risk to begin with? Well - you don't have to. If you're bullish on Europe but don't want exposure to the euro, the WisdomTree Europe Hedged Equity Fund ETF ( HEDJ ) is worth considering....

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