Baseline Analytics

Market risk assessment tools and tactical investment opportunities driven by curated financial insight

Currencies Can Have A Role In Your ETF Portfolio

Contributed by David Fabian of FMD Capital Management.     If you have been following the ETF industry at even a cursory level, it’s been difficult to miss the fervor surrounding currency-hedged funds.  This dynamic strategy first burst onto the scene with the release of the WisdomTree Japan Hedged Equity Fund (DXJ) in 2006.  DXJ quickly amassed an impressive track record as its dual threat of equity and currency exposure propelled it into the spotlight.  Assets soon followed and the fund has since grown to $9.1 billion in size.

This success was then shadowed by a slew of successive international indexes trying to capitalize on the currency hedged theme.  There now exists nearly 100 ways to play this space that include: broad baskets, regional indexes, single countries, and more.

Editor's Note:

Baseline Analytics TrendFlex applied to the following Currency ETF's (updated from 5/4/16 market close): 

 Symbol  Trend  Date Trend Change Risk
 FXF  BULLISH  4/25/16 LOW
TrendFlex Score & TrendFlex Signals for 5/06/2016
Index and Sector ETF Signal Changes - 5/3/16 Marke...

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