A new iShare, the worlds largest ETF provider launched its first currency-hedge bond ETF last week. The ETF, called iShares MSCI Emerging Markets Bond (EEM), is designed to track a basket of currencies that are in short supply or have been devalued by central banks and other governments. ex US High Yield Bond ETF is one of a very small group of strategies that aims to mitigate currency risk on international bond portfolios. Against a back drop of a strengthening dollar, currency hedged ETFs have proven effective in equities markets.
A new iShare, the worlds largest ETF provider launched its first currency-hedge bond ETF last week. The Currency Hedged Global ex US High Yield Bond ETF is one of a very small group of strategies that aims to mitigate currency risk on international bond portfolios. Against a back drop of a strengthening dollar, currency hedged ETFs have proven effective in equities markets.