Rekindled Interest in Currency Hedged Equity ETFs

Now that Mario Draghi came out and said he wants more inflation and that the European Central Bank will re-evaluate its economic stimulus at the next meeting, most investors are seeing a massive interest in stocks again. The way to play the international market ETFs under a period of quantitative easing is magnified through hedged ETFs.

Again, this takes the risk of a rising dollar, or a falling euro or yen, out of the equation. Otherwise the raw market gains get eaten up by currency devaluation.

WisdomTree Europe Hedged Equity ETF (NYSEMKT: HEDJ) was last seen up 3.7% at $59.75. The 4.7 million shares average was already up at more than 3.5 million shares. This hedged euro-stock ETF has a 52-week trading range of $52.45 to $68.72.

WisdomTree Germany Hedged Equity ETF (NYSEMKT: DXGE) was last seen up 3.3% at $27.57, and the average volume of 152,000 was already close to being hit. Its 52-week range is $24.03 to $32.56.

WisdomTree Japan Hedged Equity ETF (NYSEMKT: DXJ) was last seen up 2.3% at $53.67, versus a 52-week range of $45.68 to $60.59. Its share volume of 4 million is still well under the average daily volume of over 6.5 million shares.

The undisputed winner of the hedged ETF trend is of course WisdomTree Investments Inc. (NASDAQ: WETF). This fund and ETF management company was last seen up 9% at $17.84, versus a 52-week range of $10.93 to $26.23. The company has a $2.5 billion market cap and manages approximately $57.5 billion in assets under management globally.

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