The coronavirus pandemic could drive permanent changes in standards for remote work and data management. According to Morningstar, the WisdomTree Cloud Computing Fund (WCLD) is among the top five performing funds in the U.S. Technology category so far in 2020. Jeremy Schwartz and Kara Marciscano discuss WCLD as a potential way for investors to position for long-term growth in the cloud computing industry.
Much has been made of the recent trend of dollar weakness, particularly against the euro. But there is a particular European strategy that has stood out from the rest: German exporters.
In a year of so many negative headlines emanating from Europe, it may come as a surprise to some that eurozone stocks, denominated in euros, are virtually unchanged for the year. With investors bracing for a potential recession in France and Italy, equity markets of individual European countries are starting to see some meaningful differentiation. One of those markets is Germany.
In most cases, when investors think about international equities, they consider the fact that they are gaining exposure to the performance of the equities. However, that’s not the only investment they are making, they are also investing in the currency of the local market.
When an unhedged investment is made in foreign securities, the investor is not only taking on the equity exposure but also the currency risk. This can potentially increase the overall volatility of the investment.