WisdomTree announced that the WisdomTree Japan Total Dividend Fund (DXJ) will begin to hedge Japanese yen exposure.
DXJ will provide the same broad exposure to the Japanese equity market but will seek to neutralize fluctuations in the yen against the U.S. dollar. The change will be effective after the close of business on March 31, 2010.
WisdomTree managers point out that many investors believe that the Japanese equity markets have performed poorly recently because their exporting companies have been significantly plagued by the strength of the Japanese yen. If the yen were to weaken, many would consider that to be a catalyst for rising exports and for the Japanese equity markets to out-perform broader international markets.
The Fund will be renamed the WisdomTree Japan Hedged Equity Fund (DXJ) and will be designed to provide exposure to this equity market while neutralizing the downside for U.S. investors that would come from a weakening yen.
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