WisdomTree Hedged Germany ETF Launches

January 23, 2014

In October, WisdomTree launched the WisdomTree Germany Hedged Equity Fund (DXGE)—a fund that goes head-to-head with the db X-trackers MSCI Germany Hedged Equity Fund (DBGR | C-47).

DXGE’s underlying index, the WisdomTree Germany Hedged Equity Index, is a dividend-weighted index designed to provide exposure to Germany equity markets while at the same time neutralizing exposure to fluctuations of the value of the euro relative to the U.S. dollar, according to the fund’s regulatory filing.

The fund’s strategy is designed to capture companies with a more global revenue base—the same firms that would benefit most from a strong U.S. dollar.

The fund’s currency hedge mechanism is designed to protect investors from changes in the euro-dollar exchange rates, and should deliver higher returns than a similar unhedged portfolio when the euro is weakening against the dollar.

 

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