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.
Register or login for access to this item and much more
All Financial Planning content is archived after seven days.
Community members receive:
- All recent and archived articles
- Conference offers and updates
- A full menu of enewsletter options
- Web seminars, white papers, ebooks
Already have an account? Log In
Don't have an account? Register for Free Unlimited Access