FX: Wild ride for currency-hedged ETFs to continue apace

The rollercoaster ride for currency-hedged exchange-traded funds (ETFs) shows no sign of slowing, with the up of 2015 and subsequent down of last year followed by increased investor interest in the early months of 2017.

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An upturn in sales in the immediate aftermath of the EU referendum could not mask the disappointing performance of currency-hedged ETFs in 2016.

Bloomberg data show almost €400 million of outflows from European domiciled currency-hedged equity ETFs last year, and even heightened demand for hedged fixed income and commodity products failed to prevent a near 13% fall in overall European domiciled currency-hedged ETF inflows.

However, 2017 has seen a sizeable return in interest from investors, with overall inflows up by almost €7.2

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