2024-07-26 05:00:00 ET
Summary
- Dynamic currency hedging has effectively reduced international portfolio risk and added value to non-hedged equity portfolios, especially during periods of U.S. dollar strength.
- Since 2016, the WisdomTree Dynamic Currency Hedged International Equity Fund has outperformed a 50% hedged portfolio with an annual performance of 8.3% and a risk of 12.7%, adding 2% annually over the WisdomTree International Equity Fund.
- Our dynamic hedging strategy, which includes five components, has seen adjustments in hedge ratios influenced by momentum components, with all components adding value since 2023, and recent monthly rebalancing decreased the developed market hedge to about 20%.
By Liqian Ren
At WisdomTree, we offer numerous suites of Funds. In this blog post, I will focus on two particular suites: one that is dynamically hedged and another that is not hedged....
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For further details see:
A Look At The Performance Behind Our Suite Of Dynamically Hedged ETFs