The end of 2009 saw the entry of a new ETF in the already dense ETF landscape; a currency hedged ETF. This new feature is of interesting significance due to its packaging inside an ETF.
WisdomTree has introduced a new twist on international exchange traded funds. The WisdomTree International Hedged Equity ETF (HEDJ) provides investors with exposure to non-U.S. equity securities in Europe, Far East Asia and Australasia, while at the same time neutralizing currency movements in these regions versus the U.S. dollar.
U.S. investors have fully embraced the idea of diversifying their portfolios with international equities. However, investing outside the border of the U.S. exposes portfolios to currency fluctuations.