Wednesday, February 18, 2015
More on Europe
An interesting chart from Bloomberg
Investors are hedging their bets against more wild currency moves.
Nearly half of all inflows into U.S.-listed exchange-traded funds this year have been invested in currency-hedged products, according to ETF.com. A total of $10 billion has entered 35 currency-hedged funds in 2015, amounting to 49% of the $20.4 billion that all ETFs had gathered as of Friday, the firm said.
Such funds have been available for several years, but have become increasingly popular as of late as the U.S. dollar appreciates. In the first six weeks of 2015, the funds have collected nearly 30% of their total asset base.
Matt Hougan, president of analytics and publications at ETF.com, expects currency-hedging to be a defining theme of 2015. It’s the number one topic of discussions at conferences and among advisers, he says.