The WisdomTree Europe Hedged Equity Fund (HEDJ) recently surpassed USD5 billion in assets. HEDJ is designed to provide exposure to European dividend-paying exporters, while hedging out the movements of the euro relative to the US dollar.
The European Central Bank (ECB) President Mario Draghi is readying even further monetary policy accommodation in early 2015 to support its fledging growth, while the US economy is gaining momentum and the US Federal Reserve prepares to hike interest rates for the first time since rates have been pegged near zero ever since 2008.
Jeremy Schwartz, WisdomTree Director of Research, says: “As the Fed begins to tighten its policy stance next year and the ECB continues to discuss further monetary easing, the euro is poised to weaken further, versus the US dollar. Yet for investors in Euro area, this accommodation can provide support to risk assets like equities.”
