Currency-hedged ETF surge prompts hedging concerns

Eurozone QE programme prompts wave of investor interest

etfcards

Loose monetary policies pursued by central banks in the wake of the financial crisis have left equity investors in a bind. The access to cheap financing permitted by quantitative easing in various countries has inflated equity valuations and encouraged inflows into exchange-traded funds (ETFs) that track them, but the significant currency depreciation that comes with easing means the cumulative returns available to overseas investors are being eroded.

Large institutional players are able to neut

To continue reading...

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an indvidual account here: