4 Income ETFs That Hit $1B In 2014

June 24, 2014

3. $1.8 billion WisdomTree Europe Hedged Equity ETF (HEDJ | B-47) YTD Return: 5.7 percent

HEDJ launched in December 2009 and tracks an index of eurozone large-cap dividend-paying companies that derive a majority of revenue from exports outside the eurozone. HEDJ is hedged against the euro for U.S. investors.

The fund’s underlying holdings should do well when the euro is weak or weakening, and the hedge works (in a weakening euro scenario, for example) to protect local gains from getting lost in translation back to greenbacks.

However, the flip side is that in a strengthening euro environment such as 2013, the fund, hit by poor local returns and no foreign exchange gain, would lag unhedged funds, including the iShares MSCI EMU ETF (EZU | A-63) and the Vanguard FTSE Europe ETF (VGK | A-96), by an even greater amount.

The fund has an annual expense of 0.58 percent, or $58 for every $10,000 invested, and had a net distribution yield of 1.9 percent within the past 12 months.

HEDJ_Vs._VGK_Vs._EZU_2013_Performance

 

 

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