FX: Wary investors still suspicious of currency-hedged ETFs

Investors continue to shy away from currency-hedged ETFs despite their positive short- and medium-term performance.

According to Bloomberg data, assets in currency-hedged exchange-traded funds had more than halved by the beginning of 2018 from their 2015 peak of $63 billion. Yet about 81% of hedged funds have outperformed their unhedged equivalents over the last 12 months, a figure that rises to 89% over a five-year time frame.

Sal_Bruno-160x186

Sal Bruno,
IndexIQ

The problem is that many investors came late to the game, and by the time they got into these funds the dollar rally had stalled.

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