WisdomTree has launched the WisdomTree International Hedged Dividend Growth Fund (IHDG), and the WisdomTree Europe Dividend Growth Fund (EUDG) on the NYSE Arca.
Jeremy Schwartz, WisdomTree director of research, says: “During the past year, we continue to see investor interest in currency hedged strategies, including the WisdomTree Japan Hedged Equity Fund (DXJ) and the WisdomTree Europe Hedged Equity Fund (HEDJ). We believe that a currency-hedged exposure to the broader-based developed world may be attractive to certain investors.”
In an environment that could see significant strength in the US dollar, IHDG can provide investors international exposure while attempting to avoid the risk of currency depreciation.
IHDG is designed to provide exposure to dividend-paying stocks of companies with growth characteristics in the developed world (excluding Canada and the US), while neutralising exposure to fluctuations of the value of foreign currencies relative to the US dollar. IHDG has an expense ratio of 0.58 per cent.
European markets have recently performed well, with many focusing on the economic recovery, resulting in a prominent surge of recent inflows into European focused funds.
“For those who believe the recovery in Europe is in its early stages and there are greater prospects for earnings and dividend growth, EUDG provides access to dividend growth opportunities in Europe,” says Schwartz. “Moreover, the launch of EUDG could be of particular interest to investors who have historically appreciated a higher quality bias in their investment approach. Many investors in international equities desire to take currency exposure, and EUDG provides this exposure.”
EUDG is designed to provide exposure to dividend-paying stocks of companies with growth and quality characteristics that are listed on a stock exchange in one of the following countries: Austria, Belgium, Denmark, Finland, France, Germany, Ireland, Italy, Netherlands, Norway, Portugal, Spain, Sweden, Switzerland or the UK. EUDG has an expense ratio of 0.58 per cent.
