HEZUiShares Currency Hedged MSCI Eurozone ETF
HEZU Fund Description
The iShares Currency Hedged MSCI Eurozone ETF tracks a cap-weighted index of large- and midcap securities from the eurozone, while hedging out its exposure to the euro currency relative to the US dollar.
HEZU Factset Analytics Insight
HEZU offers straightforward exposure to eurozone countries, hedged for currency exposure for US investors. By design, it excludes the UK, Switzerland and Sweden, so it doesn’t Fit well with our broad European benchmark. Its currency hedge also contributes the low Fit score.
HEZU literally holds the blockbuster exchange-traded fund, EZU, overlaid with short forward contracts to neutralize euro exposure. This arrangement creates tracking error that’s akin to fair-market valuation of NAV. The tracking error—and HEZU’s low Efficiency score—is caused by the difference in market hours (EZU in New York and the index stocks in Europe) rather than by sloppy portfolio management. On the other hand, using the ultra-liquid EZU as a single holding for creation/redemption purposes significantly reduces hedging costs for market makers, which in turn trickles down to lower overall trading costs to investors. HEZU’s expense ratio isn’t as cheap as some vanilla funds, but is similar to currency-hedged competitors in the segment. Overall, this large and liquid offering provides solid exposure to the eurozone without the currency risk and return.
HEZU CHARTS AND PERFORMANCE
HEZU Top 10 Countries
HEZU Top 10 Sectors
HEZU Top 10 Holdings
HEZU Portfolio Management
HEZU Tax Exposures
HEZU Fund Structure
HEZU Factset Analytics Block Liquidity
This measurement shows how easy it is to trade a $1 million USD block of HEZU. HEZU is rated a 4 out of 5.
HEZU Sector/Industry Breakdown
HEZU TOP 10 HOLDINGS
HEZU Economic Development
HEZU Performance Statistics
HEZU BENCHMARK COMPARISON SUMMARY
HEZU BENCHMARK COMPARISON MARKET CAP SIZE
Options Strategies for Outcome Investing
A collar strategy is a protective option strategy constructed by writing a call and buying a put with the same expiration date while being long the underlying security.
A covered call is an income strategy constructed by writing a call option against a holding of the underlying security.