BlackRock, the world’s largest asset manager, and WisdomTree Investments Inc., whose Europe Hedged Equity Fund has absorbed more cash than any other ETF in the last 12 months, are starting products that take a flexible approach to mitigating dollar strength when buying international stocks. The funds -- three from BlackRock and four from WisdomTree -- expand or contract hedges to reflect market moves, spokespeople for the companies said. All start trading Thursday. The companies already sell funds that aim to fully hedge currency exposure.
Investors are reassessing expectations for dollar appreciation after the greenback strengthened against all 16 of its major peers last year. Almost $47 billion flowed into hedged products in the 12 months through December as U.S. money managers sought refuge from the dollar’s advance, which can sap the value of investments abroad when money is repatriated. With dollar gains moderating in recent months, interest in such products has ebbed, encouraging ETF providers to innovate.