DWS FX Forecast 2022: Don’t Be Caught Off-Cut by Currency Fluctuations

VScurrency markets are often overlooked and misunderstood. But as central banks consider further rate changes and inflation proves less transitory than expected, investors would do well to carefully consider the impact of exchange rates on their international equity allocations.

In the next webcast, DWS FX Forecast 2022: Don’t Be Caught Off-Cut by Currency FluctuationsJason Chen, DWS Senior Research Analyst, and Dr. Liang Ding, Co-Head of Currency Strategy, Macro Research, will discuss how international currency movements could affect global investments and portfolios in 2022, as well as how international currency hedging strategies can allow investors to play more pure in underlying foreign markets.

For example, a global game that hedges against currency fluctuations against the US dollar is the Xtrackers MSCI All World ex US Hedged Equity ETF (DBAW). DBAW seeks investment results that generally correspond to the performance of the MSCI ACWI ex USA US Dollar Hedged Index, which is designed to track the performance of equity securities in developed and emerging equity markets while mitigating exposure to fluctuations between the value of the USD and the currencies of the countries included in the underlying index.

the Xtrackers MSCI EAFE Hedged Equity ETF (DBEF) seeks investment results that generally correspond to the performance of the MSCI EAFE US Dollar Hedged Index. The index is designed to track the performance of developed markets while mitigating exposure to fluctuations between the value of the US dollar and the currencies of developed economies in Europe, Australasia and the Far East.

Emerging market investors can also turn to the same currency hedging strategy. In this case, it is the Xtrackers MSCI Emerging Markets Hedged Equity ETF (DBEM). DBEM seeks investment results that generally correspond to the performance of the MSCI EM US Dollar Hedged Index. The fund, using a “passive” or index-based investment approach, seeks investment results that generally correspond to the performance, before fees and expenses, of the underlying index, which is designed to track the performance of emerging markets while mitigating exposure to fluctuations between the value of the US dollar and the currencies of the countries included in the underlying index.

Financial advisors interested in learning more about international currency hedging strategies can register for the Tuesday, February 1 webcast here.

Learn more at ETFtrends.com.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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