WisdomTree, a leading provider of exchange-traded funds, has launched two new funds on the NYSE Arca: the WisdomTree International Hedged Dividend Growth ETF (IHDG) and the WisdomTree Europe Dividend Growth ETF (EUDG).
Jeremy Schwartz, WisdomTree Director of Research.
The WisdomTree International Hedged Dividend Growth ETF is designed to provide exposure to dividend-paying stocks of companies with growth characteristics in the developed world (excluding Canada and the US), while neutralizing exposure to fluctuations of the value of foreign currencies relative to the US dollar.
In an environment that could see significant strength in the US dollar, the fund, which has an expense ratio of 0.58%, offers investors a means of gaining international exposure while attempting to avoid the risk of currency depreciation.
Jeremy Schwartz, WisdomTree Director of Research, commented: “During the past year, we continue to see investor interest in currency hedged strategies, including the WisdomTree Japan Hedged Equity Fund (DXJ) and the WisdomTree Europe Hedged Equity Fund (HEDJ). We believe that a currency-hedged exposure to the broader-based developed world may be attractive to certain investors.”
The WisdomTree Europe Dividend Growth ETF, meanwhile, which has an expense ratio of 0.58%, is designed to provide exposure to dividend-paying stocks of companies with growth and quality characteristics that are listed on exchanges in developed European countries.
European markets have recently performed well as economic recovery takes hold, resulting in a surge of recent inflows into European-focused funds.
According to Schwartz: “For those who believe the recovery in Europe is in its early stages and there are greater prospects for earnings and dividend growth, EUDG provides access to dividend growth opportunities in Europe. Moreover, the launch of EUDG could be of particular interest to investors who have historically appreciated a higher quality bias in their investment approach. Many investors in international equities desire to take currency exposure, and EUDG provides this exposure.”