The U.S. dollar has been on a tear the PAST YEAR and a half, and this has certainly been a factor as U.S. stocks have trounced international stocks during that period. But international funds that hedge foreign currency against U.S. dollar movements have fared much better because they were effectively immunized against the surging dollar.

Not surprisingly, money has flowed into hedged international ETFs. This category, which barely existed five years ago, had $56 billion as of Dec. 27, 2015, according to Morningstar. It is now nearly 13% of total international stock ETFs.

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