WisdomTree expands ETF currency hedges

Dollar hedge mazeWisdomTree has expanded the currency-hedged share classes of three exchange-traded funds (ETFs), including its best-selling Europe equity product.

European, Japanese and German equity ETFs now have share classes that hedge sterling, Swiss franc and euro.

WisdomTree says the move will allow investors to more efficiently take currency positions in an environment dominated by quantitative easing, which has increased currency risk. Also, liquidity in the funds should increase as assets under management (AUM) grow.

The funds were launched in May this year and have accumulated $135 million (€123 million) in assets. The European equity fund is the most successful, with $79 million of AUM.

Unhedged ETFs of some of the firm’s most popular funds will also be offered.

WisdomTree has about $57.6 billion in AUM globally, as at October 29, 2015.

©2015 funds europe