Daily ETF Watch: Unhedged Funds Planned

WisdomTree files for unhedged versions of its most popular currency-hedged ETFs.

Reviewed by: Heather Bell
Edited by: Heather Bell

In a recent pair of filings, WisdomTree filed for unhedged versions of its two largest funds, the $19.5 billion WisdomTree Europe Hedged Equity ETF (HEDJ | B-49) and the $15.6 billion WisdomTree Japan Hedged Equity ETF (DXJ | B-74). The WisdomTree Europe Equity ETF and the WisdomTree Japan Equity ETF will, like their hedged counterparts, focus on dividend-paying companies that generate at least half of their revenues from outside Europe or Japan, respectively.

DXJ was originally just a dividend-weighted Japan fund that neither targeted exporters nor hedged its currency exposure. In 2010, the fund adopted a currency hedge, and in late 2012, it added a screen designed to select export-oriented companies.

HEDJ, similarly, was a very different fund when it launched. Originally called the WisdomTree International Hedged Equity Fund when it launched in 2009, it shifted its focus to Europe in 2012. WisdomTree also launched another International Hedged Equity Fund (HDWM) earlier this year.

When the funds in the most recent filings launch, investors will be able to toggle back and forth between hedged and unhedged exposure to the same indexes as dictated by market conditions.

The filings did not include tickers or expense ratios, nor did they provide a primary listing exchange.

Contact Heather Bell at [email protected].

Heather Bell is a former managing editor of etf.com. She has also held editorial positions at Dow Jones Indexes and Lehman Brothers. Bell is a graduate of Dartmouth college and resides in the Denver area with her two dogs.