State Street Global Advisors (SSGA) has launched the SPDR MSCI International Real Estate Currency Hedged ETF (HREX) and the SPDR S&P International Dividend Currency Hedged ETF (HDWX) on the NYSE Arca.
HREX and HDWX join SSGA’s first currency hedged ETF – the SPDR EURO STOXX 50 Currency Hedged ETF (HFEZ) – which launched in June 2015.
“Recent flow trends have highlighted continued investor interest in currency hedged ETFs to help manage currency volatility,” says James Ross (pictured), executive vice president and global head of SPDR Exchange Traded Funds at State Street Global Advisors. “The search for yield continues to be a pressing need for investors and the addition of HREX and HDWX provides our clients with the ability to better manage currency risk when seeking attractive income-producing opportunities outside of the US.”
The SPDR MSCI International Real Estate Currency Hedged ETF seeks to track the performance of the MSCI World ex USA IMI Core Real Estate Capped 100 per cent Hedged to USD Index. This index is designed to reflect the performance of stocks in the MSCI World ex USA IMI Index that are engaged in the ownership, development and management of specific core real estate property types while minimizing exposure to fluctuations in foreign currencies. The SPDR MSCI International Real Estate Currency Hedged ETF’s gross expense ratio is 0.48 percent.
The SPDR S&P International Dividend Currency Hedged ETF seeks to track the performance of the S&P International Dividend Opportunities USD Hedged Index. This index is designed to represent the performance of the 100 highest dividend-yielding common stocks and ADRs listed in primary exchanges of countries included in the S&P Global BMI ex US (Broad Market Index) while minimizing exposure to fluctuations in foreign currencies. The SPDR S&P International Dividend Currency Hedged ETF has a net expense ratio to the investors of 0.48 percent. As a result of the acquired fund fees from holding the SPDR S&P International Dividend ETF (DWX), the gross expense ratio is 0.93 percent.
