WisdomTree Blog

What Happens When You Dynamically Hedge Currency in an International Portfolio
History shows currency exposure has increased the volatility of broad-based international equity portfolios over long periods, and without adding to expected returns. We believe a dynamic approach to managing currency risk can be a significant source of value to international exposures over market cycles.
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A Return to King Dollar Policy: Implications

One of the most important macro stories of the last 15 months has been the dramatic decline in the U.S. dollar. However, the changing of the guard in the White House, with the insertion of Larry Kudlow as Trump’s primary economic advisor, may be ushering in a very important strategic change in the currency markets and sentiment.

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Don’t Start the Race from Behind the Starting Line

We feel strongly about helping our clients understand the impact that currencies have on international equity returns. To adapt to the changing dynamics of the currency markets, we think one of the best approaches is exactly that: dynamic.

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What Global Correlations Mean for Portfolio Construction & Smart Beta

Quantitative easing liquidity world average correlations have been dropping in the U.S., and we see similar patterns globally, especially in Europe and Japan. How should investors account for this when constructing their portfolios?

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Three Options Illustrating Smart Hedging Potential
WisdomTree has been a rather passionate advocate for the view that investors tend to take on unnecessary risk when they invest abroad—one need not utilize double-decker strategies that package currency returns on top of equities. More simply, investors can buy single-decker strategies that have an expressed goal of delivering returns of equity markets only, mitigating risks from a secondary and distracting bet on currencies. 
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Another Way to Lower Volatility in Developed Markets

One of the lessons learned over the past 10 years is that the U.S. equity market has great resiliency—even during periods when markets tank. But for U.S. investors buying into broad developed world index funds tracking the MSCI EAFE Index, the last 10 years were disappointing.

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