Bringing you live news and features since 2006 

South Korea

WisdomTree launches Korea Hedged Equity Fund

RELATED TOPICS​

WisdomTree has launched a new exchange traded fund, the WisdomTree Korea Hedged Equity Fund (DXKW), on the Nasdaq Stock Market.

DXKW seeks to provide exposure to Korean equity markets while hedging exposure to the won and has an expense ratio of 0.58 per cent.
 
South Korea is a flourishing emerging economy, known for its shipping industry and exporting prowess, supplying the world with advanced technologies and automobiles from global leaders. In 2012, South Korea's gross domestic production (GDP) was nearly twice that of many developed nations including Switzerland, Sweden and Norway, and almost 60 per cent of the country's GDP was from exports.
 
"For any exporter-focused country, a strengthening currency can be a competitive disadvantage in the global market place. In the last 12-months, as Japan's policy of 'Abenomics' has resulted in a depreciating Japanese yen, South Korea's won has appreciated significantly – 20 per cent versus the yen. As a result, South Korea's exporters have faced tougher competition from their revitalised Japanese counterparts," says Jeremy Schwartz, WisdomTree director of research. "Given their significant overlap in export products, we believe South Korea is the country most impacted by the yen's weakening. If the South Korean won declines relative to the yen – and for that matter, the US Dollar – we believe this would be a boon for South Korea's equities.
 
"We believe DXKW can offer exposure to the growth potential of South Korea's exporters while helping to protect US investors from potential declines in the Korean won against the US dollar."
 
One way for US investors to isolate the performance of Korean equities from the performance of the won is to hedge the currency exposure, thus, helping to reduce the overall volatility of investing in this market.

Latest News

Global X ETFs has announced the appointment of Ryan O'Connor as its Chief Executive Officer effective as of April 8, 2024. ..
Value-driven structured credit investing firm, Angel Oak Capital Advisors, LLC, has announced the completed conversions of two of its mutual..
Confidence in the continuing strength of bitcoin and Ethereum is driving wider interest in altcoins and other digital assets, according..
First Trust has announced the launch of the First Trust Vest U.S. Equity Moderate Buffer UCITS ETF – February GFEB..

Related Articles

Frank Koudelka, State Street Global Services
ETF data provider and ETF Express data partner, Trackinsight, has published its Global ETF Survey 2024 Report: ‘50+ Charts on...
Cryptocurrencies
Matteo Greco, Research Analyst at Fineqia International writes that bitcoin (BTC) ended the week at approximately USD52,150, showing a notable...
US Distribution Awards trophies
The winners of the first US ETF Distribution Awards at the Exchange conference, hosted by ETF Express and sponsored by...
Thomas Bonville, Clear Street
Just over a year ago, Thomas Bonville joined New York-based, prime brokerage Clear Street as managing director, head of derivative...
Subscribe to the ETF Express newsletter

Subscribe for access to our weekly newsletter, newsletter archive, updates on the site and exclusive email content.

Marketing by