BlackRock has introduced a currency-hedged share class for its broad maturity US Treasury bond ETF on London Stock Exchange. The iShares $ Treasury Bond UCITS ETF GBP-Hedged trades under the ticker GOVP LN and hedges exposure between the US dollar and pound sterling, the share’s trading currency.

By Salvatore J. Bruno, Chief Investment Officer, IndexIQ.

There’s a saying that recessions don’t just happen; they’re the result of policy mistakes. There are differing opinions about the policy steps currently being taken with respect to trade and the Fed’s actions. This is causing market volatility and has economists worried, and more and more are predicting the possibility of recession between now and the end of 2020.

French banking and investments giant BNP Paribas has introduced euro-hedged share classes for a further eight of its commodity ETCs listed on Xetra. The ETCs use futures contracts to provide exposure to aluminum, gas oil, gasoline, heating oil, lead, tin, zinc, and a basket of metals.

First Trust has launched a new actively managed ETF on Toronto Stock Exchange which aims to provide investors with structured, risk-controlled exposure to the US equity market. The First Trust Cboe Vest US Equity Buffer ETF – August (AUGB.F CN) offers access to the bellwether S&P 500 Index while protecting the fund against potential losses up to a predetermined amount. Karl Cheong, Head of Distribution at First Trust Canada, commented, We believe this ETF will be effective for those seeking equity-like upside potential for their clients, with a level of downside protection.”

By Christopher Dhanraj, Head of iShares Investment Strategy, BlackRock.

With the dollar maintaining its strength versus other currencies, the question of whether to hedge that currency effect remains an important one for US investors considering international exposures.

French banking and investments giant BNP Paribas has launched euro-hedged share classes for six of its commodity ETCs listed on Xetra. The ETCs use futures contracts to provide exposure to nickel, copper, natural gas, WTI crude oil, Brent crude oil, and a basket of industrial metals. Each is linked to a ‘RICI Enhanced’ index, part of the Rogers International Commodity Index (RICI) stable of indices created by well-known commodities investor Jim Rogers.

BlackRock has rolled out three new share classes on SIX Swiss Exchange, providing access to different segments of the EUR and USD corporate bond markets while hedging currency exposure relative to the Swiss franc.

BlackRock has launched GBP-hedged share classes for two of its sustainability-themed fixed income ETFs listed in Europe. The funds, which are linked to Bloomberg Barclays indices with SRI screening from MSCI, provide exposure to euro or US dollar-denominated corporate bonds from issuers with acceptable environmental, social, and governance (ESG) profiles.

French banking and investments giant BNP Paribas has launched a new currency-hedged share class for its BNP Paribas RICI Enhanced Energy Index ETC. The BNP Paribas RICI Enhanced Energy Index EUR-hedged ETC (B4NX GR) has been listed on Xetra and provides exposure to a basket of energy commodities while hedging currency exposure relative to the euro.

Invesco has launched new ETF share classes on London Stock Exchange and SIX Swiss Exchange, providing access to different segments of the US Treasury bond market while hedging currency exposure to pound sterling. They are the Invesco US Treasury Bond 1-3 Year UCITS ETF GBP Hedged (T3GB LN, T3GB SW) and the Invesco US Treasury Bond UCITS ETF GBP Hedged (TRGB LN, TRGB SW).