iShares Plans Hedged ETFs
A recent flurry of filings from iShares for 11 currency-hedged funds that will invest in existing iShares ETFs indicates the world’s largest ETF provider has a laserlike focus on the rapidly expanding currency-hedged ETF space.
iShares currently trails firms like WisdomTree and Deutsche Bank in terms of the number of currency-hedged ETFs it sponsors and the assets invested in them. Nevertheless, the firm’s currency-hedged lineup is nothing to sneeze at; it has some $5.5 billion invested in the five currency-hedged equity funds that it does offer.
iShares is in a unique position not shared by either of its two competitors in the currency-hedged space in that it has a wide array of existing traditional cap-weighted regional and single-country equity ETFs that are already up and running. That means its new currency-hedged versions of those funds can invest in the pre-existing unhedged ETFs and simply add the hedging strategy.
In other words, these funds are likely to have instant liquidity based on the pre-existing and well-established securities despite its slow start. That means that the world’s largest ETF company is likely to become a major competitor in the currency-hedged arena.
The 11 proposed currency-hedged funds, including three regional ETFs and eight single-country ETFs, and their corresponding cap-weighted iShares ETFs, are as follows:
- iShares Currency Hedged MSCI ACWI ETF / iShares MSCI ACWI ETF (ACWI | A-97)
- iShares Currency Hedged MSCI ACWI ex U.S. ETF / iShares MSCI ACWI ex U.S. ETF (ACWX | B-97)
- iShares Currency Hedged MSCI EAFE Small-Cap ETF / iShares MSCI EAFE Small-Cap ETF (SCZ | B-93)
- iShares Currency Hedged MSCI United Kingdom ETF / iShares MSCI United Kingdom ETF (EWU | B-92)
- iShares Currency Hedged MSCI Australia ETF / iShares MSCI Australia ETF (EWA | B-100)
- iShares Currency Hedged MSCI Switzerland ETF / iShares MSCI Switzerland Capped ETF (EWL | B-96)
- iShares Currency Hedged MSCI Spain ETF / iShares MSCI Spain Capped ETF (EWP | B-95)
- iShares Currency Hedged MSCI South Korea ETF / iShares MSCI South Korea Capped ETF (EWY | B-96)
- iShares Currency Hedged MSCI Mexico ETF / iShares MSCI Mexico Capped ETF (EWW | B-95)
- iShares Currency Hedged MSCI Italy ETF / iShares MSCI Italy Capped ETF (EWI | C-92)
- iShares Currency Hedged MSCI Canada ETF / iShares MSCI Canada ETF (EWC | A-94)
The filings did not include tickers or expense ratios.