Should You Love Currency Hedged ETFs?

Currency-hedged exchange-traded funds (“ETFs”) have become extremely popular among international investors due to the weakness in the euro and yen relative to the U.S. dollar over the past several months. During the first half of 2015, 40% of ETFs with the largest capital inflows were currency-hedged products, while sponsors have jumped on the bandwagon by launching a growing number of new currency-hedged ETFs into the market. In this article, we’ll take a look at why currency-hedged ETFs matter as well as some important considerations for investors interested in them.