What's not to like about a Europe-focused ETF that leaves the euro's troubles behind?
WisdomTree, the publicly traded ETF firm, is changing its international currency hedged equities fund “HEDJ” into a currency-hedged fund focused solely on Europe, taking the euro’s struggles off the table for investors.
As of Wednesday, Aug. 29, the WisdomTree International Hedged Equity Fund (NYSEArca: HEDJ) will become the WisdomTree Europe Hedged Equity Fund, according to a communique from Arca, the New York Stock Exchange’s electronic trading platform.
“Concerns over the future of the euro may cause investors to reevaluate their exposure to Europe,” WisdomTree Chief Investment Officer Luciano Siracusano said in a press release.
“In fact, even in a declining euro environment, we believe many global companies headquartered in Europe will continue to be competitive and have the potential to generate substantial profits,” Siracusano said.
The ETF had been created to provide broad currency-hedged exposure to stocks from a variety of regions, including Europe, Australasia and the Far East, the company said.
The reconstituted portfolio will provide exposure to export-oriented European companies that pay dividends, all while neutralizing the euro’s movements against the U.S. dollar.
“By providing exposure to European stocks while neutralizing the downside for U.S. investors that would be inflicted by a weakening euro, we believe HEDJ can provide a precise and thoughtful alternative to un-hedged portfolios of European stocks,” Siracusano said.
The ETF's index will change, but its ticker symbol “HEDJ” won’t.
The New York-based ETF firm also markets the WisdomTree Japan Hedged Equity Fund (NYSEArca: DXJ).