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How To Invest Overseas (Without Currency Risk)
October 25, 2012 at 09:00 AM EDT
ETFs continue to open up the doors to international markets that were previously too difficult, or costly, to access for mainstream investors. While many have taken advantage of this by adding geographic diversity to their portfolios, few have considered the impact of currency fluctuations on their foreign, non-U.S. dollar denominated investments. Whether they realize it or not, investors with exposure to Brazilian or Japanese stocks, for example, are also exposed to the currency risks associated with the Brazilian real and the Japanese yen respectively. As such, Martin Kremenstein, Director and Chief Investment Officer of Deutsche Bank Commodity Services, recently took time to discuss the importance of currency exposure and how the lineup of currency-hedged ETFs offer a creative way to evade currency fluctuations without sacrificing international exposure [see King Dollar ETFdb Portfolio]. ETF Database (ETFdb): Can you explain the basic nuances associated with investing in foreign currency-denominated assets? Martin Kremenstein (MK): When a U.S.-based investor invests in a foreign currency-denominated asset, like a foreign equity [...] Click here to read the original article on ETFdb.com. Related Posts: No Related Posts
ETFs continue to open up the doors to international markets that were previously too difficult, or costly, to access for mainstream investors. While many have taken advantage of this by adding geographic diversity to their portfolios, few have considered the impact of currency fluctuations on their foreign, non-U.S. dollar denominated investments. Whether they realize it or not, investors with exposure to Brazilian or Japanese stocks, for example, are also exposed to the currency risks associated with the Brazilian real and the Japanese yen respectively. As such, Martin Kremenstein, Director and Chief Investment Officer of Deutsche Bank Commodity Services, recently took time to discuss the importance of currency exposure and how the lineup of currency-hedged ETFs offer a creative way to evade currency fluctuations without sacrificing international exposure [see King Dollar ETFdb Portfolio]. ETF Database (ETFdb): Can you explain the basic nuances associated with investing in foreign currency-denominated assets? Martin Kremenstein (MK): When a U.S.-based investor invests in a foreign currency-denominated asset, like a foreign equity [...]
