India stands to be one of the great growth stories of the coming decades. But does India’s high inflation erode the value of the rupee such that returns for U.S. investors buying Indian equities will be hurt by a perpetually falling exchange rate?
Many investors deride the trend toward currency hedging in international equities as a passing fad. WisdomTree has maintained for seven years that most U.S. investors are unnecessarily taking on too much risk strategically when they invest internationally. Why such conviction?
The Brexit vote occurred last month, creating uncertainty about the United Kingdom’s role and future in the European economy, yet the WisdomTree United Kingdom Hedged Equity Fund (DXPS) has been up 12.74% year-to-date (YTD) as of July 15, 2016, while a broader index of European stocks—the FTSE Developed Europe All Cap Index—is down 3.3% YTD in 2016. What is happening here?
Japan is back. After being practically the worst-performing equity market in the developed world in the first half of 2016 on the back of a strengthening yen, Japan has rallied strongly from its post-Brexit bottom in anticipation of a large, creative fiscal package.
In June 2006, WisdomTree launched the first international small-cap exchange-traded fund (ETF), the WisdomTree International SmallCap Dividend Fund (DLS). WisdomTree was early to recognize that the “size factor” was just as important in allocating to stocks in foreign markets as it was for the United States.