A Strategy to Thrive in a Strong U.S. Dollar Environment

As the U.S. dollar strengthens amid changing central bank monetary policy, global equity investors could find their international market exposures experiencing unintended foreign exchange currency risks.

In the upcoming webcast, A Strategy to Thrive in a Strong U.S. Dollar Environment, Sean Edkins, head of ETF strategic partnerships at DWS; Jason Chen, senior research analyst at DWS Research Institute, DWS; Craig Columbus, CEO of Columbus Macro; and Brian Wright, chief investment officer at Columbus Macro, will explain how international currency moves will impact investors’ international equity allocations and highlight specific currency-hedged investment strategies that could help mitigate the currency risks and provide a purer play on the underlying foreign markets.

For example, an all-world play that hedges against currency fluctuations against the U.S. dollar is the Xtrackers MSCI All World ex U.S. Hedged Equity ETF (DBAW). DBAW seeks investment results that correspond generally to the performance of the MSCI ACWI ex USA US Dollar Hedged Index, which is designed to track the performance of equity securities in developed and emerging stock markets while mitigating exposure to fluctuations between the value of the USD and the currencies of the countries included in the underlying index.

The Xtrackers MSCI EAFE Hedged Equity ETF (DBEF) seeks investment results that correspond generally to the performance of the MSCI EAFE US Dollar Hedged Index. The index is designed to track developed market performance while mitigating exposure to fluctuations between the value of the U.S. dollar and the currencies of the developed economies included in Europe, Australasia, and the Far East.

Emerging markets investors can also look to the same currency hedging strategy. In this case, it’s the Xtrackers MSCI Emerging Markets Hedged Equity ETF (DBEM). DBEM seeks investment results that correspond generally to the performance of the MSCI EM US Dollar Hedged Index. The fund, using a “passive” or indexing investment approach, seeks investment results that correspond generally to the performance, before fees and expenses, of the underlying index, which is designed to track emerging market performance while mitigating exposure to fluctuations between the value of the U.S. dollar and the currencies of the countries included in the underlying index.

Financial advisors who are interested in learning more about currency-hedged investment strategies can register for the Wednesday, August 31 webcast here.

https://www.etftrends.com/a-strategy-to-thrive-in-a-strong-u-s-dollar-environment/

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