HFXE, HFXJ, HFXI: 1st 50% Currency-Hedged ETFs by IndexIQ

IndexIQ begun trading of 3 new first-of-their-kind ETFs, the IQ 50 Percent Hedged FTSE Europe ETF (NYSE Arca: HFXE), the IQ 50 Percent Hedged FTSE Japan ETF (NYSE Arca: HFXJ) and the IQ 50 Percent Hedged FTSE International ETF (NYSE Arca: HFXI) on Wednesday, July 22, 2015.

 

1.
FUND INFORMATION:

Symbol: HFXE   Exchange: NYSE Arca
Name: IQ 50 Percent Hedged FTSE Europe ETF Net Expense Ratio: 0.45%

 

FUND OBJECTIVE:
The IQ 50 Percent Hedged FTSE Europe ETF seeks investment results that correspond generally to the price and yield performance of the FTSE Developed Europe 50% Hedged to USD Index.

REFERENCE INDEX:
The FTSE Developed Europe 50% Hedged to USD Index is an equity benchmark for European countries, with approximately half of its currency exposure of the securities included in the Underlying Index “hedged” against the U.S. dollar on a monthly basis. It includes primarily large- and mid-capitalization companies.
As of May 29, 2015, the Underlying Index consisted of the following 17 countries:
Austria, Belgium, Denmark, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, Netherlands, Norway, Portugal, Spain, Sweden, Switzerland, and the United Kingdom.

 

Index Top 10 Holdings (30/06/15):

Nestle S.A. 2.70%
Novartis AG 2.46%
Roche Holding Ltd Genusssch 2.31%
HSBC Holdings plc 2.05%
BP p.l.c. 1.41%
Bayer AG 1.36%
Sanofi 1.30%
Royal Dutch Shell Plc Class A 1.28%
GlaxoSmithKline plc 1.19%
Novo Nordisk A/S Class B 1.18%

 

Index Sector Allocation (30/06/15):

Financials 23.15%
Consumer Goods 17.86%
Industrials 12.24%
Health Care 12.17%
Basic Materials 8.33%
Consumer Services 7.33%
Oil & Gas 7.04%
Telecommunications 4.86%
Utilities 3.91%
Technology 3.12%

 

Index Country Allocation (30/06/15):

United Kingdom 32.24%
France 14.17%
Switzerland 14.13%
Germany 13.43%
Spain 5.22%
Sweden 4.53%
Netherlands 4.51%
Italy 3.75%
Denmark 2.61%
Belgium / Luxembourg 2.01%
Finland 1.29%
Norway 1.04%

 

Useful Links:
HFXE Home Page

 

Category: Equities> Regions> Europe> Broad Europe> All Europe

 

2.
FUND INFORMATION:

Symbol: HFXJ     Exchange: NYSE Arca
Name: IQ 50 Percent Hedged FTSE Japan ETF     Net Expense Ratio: 0.45%

 

FUND OBJECTIVE:
The IQ 50 Percent Hedged FTSE Japan ETF seeks investment results that correspond generally to the price and yield performance of the FTSE Japan 50% Hedged to USD Index.

REFERENCE INDEX:
The FTSE Japan 50% Hedged to USD Index is an equity benchmark for Japan, with approximately half of its currency exposure of the Japanese yen “hedged” against the U.S. dollar on a monthly basis. It includes primarily large- and mid-capitalization companies.

 

Index Top 10 Holdings (30/06/15):

Toyota Motor Corp. 5.33%
Mitsubishi UFJ Financial Group, Inc. 3.05%
Sumitomo Mitsui Financial Group, Inc. 1.80%
Honda Motor Co., Ltd. 1.74%
SoftBank Group Corp. 1.66%
Mizuho Financial Group, Inc. 1.55%
KDDI Corporation 1.34%
Fanuc Corporation 1.20%
Japan Tobacco Inc. 1.13%
Takeda Pharmaceutical Co. Ltd. 1.12%

 

Index Sector Allocation (30/06/15):

Consumer Goods 24.39%
Industrials 21.08%
Financials 18.51%
Consumer Services 10.89%
Health Care 6.64%
Basic Materials 6.20%
Telecommunications 4.50%
Technology 4.48%
Utilities 2.43%
Oil & Gas 0.88%

 

Useful Links:
HFXJ Home Page

 

Category: Equities> Regions> Asia> Developed Asia Equities> Japan

 

3.
FUND INFORMATION:

Symbol: HFXI    Exchange: NYSE Arca
Name: IQ 50 Percent Hedged FTSE International ETF Net Expense Ratio: 0.35%

 

FUND OBJECTIVE:
The IQ 50 Percent Hedged FTSE International ETF seeks investment results that correspond generally to the price and yield performance of the FTSE Developed ex North America 50% Hedged to USD Index.

REFERENCE INDEX:
The FTSE Developed ex North America 50% Hedged to USD Index is an equity benchmark of international stocks, with approximately half of its currency exposure of the securities included in the Underlying Index “hedged” against the U.S. dollar on a monthly basis.
The  Underlying  Index  includes  stocks  from  Europe, Australasia, and the Far East and as of May 29, 2015, consisted of the following 24 developed market countries:
Australia, Austria, Belgium, Denmark, Finland, France, Germany, Greece, Hong Kong, Ireland, Israel, Italy, Japan, Korea, Luxembourg, Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland, and the United Kingdom.
The Underlying Index includes primarily large- and mid-capitalization companies.

 

Index Top 10 Holdings (30/06/15):

Nestle S.A.  1.62%
Novartis AG  1.48%
Roche Holding Ltd Genusssch  1.39%
Toyota Motor Corp  1.25%
HSBC Holdings plc  1.23%
Samsung Electronics Co., Ltd  0.86%
BP p.l.c.  0.85%
Bayer AG  0.82%
Sanofi  0.78%
Royal Dutch Shell Plc Class A  0.77%

 

Index Sector Allocation (30/06/15):

Financials 25.28%
Consumer Goods 18.52%
Industrials  14.16%
Health Care  9.72%
Consumer Services  8.23%
Basic Materials  7.70%
Oil & Gas  5.00%
Telecommunications  4.47%
Utilities  3.48%
Technology  3.43%

 

Index Country Allocation (30/06/15):

Japan 23.49%
United Kingdom 19.37%
France 8.52%
Switzerland 8.49%
Germany 8.07%
Australia  6.61%
Korea  3.93%
Hong Kong  3.67%
Spain  3.14%
Sweden  2.72%
Netherlands  2.71%
Italy  2.25%
Denmark  1.57%
Singapore  1.37%
Belgium / Luxembourg  1.21%

 

Useful Links:
HFXI Home Page

 

Category: Equities> International Equities> International Broad

ETFtrack Comment:
Until now, most investors have had 2 choices in getting exposure to international equity ETFs: 100% currency hedged or completely unhedged. By definition, use of fully hedged or unhedged exposure requires that investors make an implicit call on the future direction of the U.S. dollar versus foreign currencies. IndexIQ’s new ETFs take a neutral approach, with a 50% currency hedge.
“Our research has shown that 50% hedged portfolios have the potential to capture up to 80% of the risk reduction benefits of a fully hedged approach, while potentially securing steadier performance, regardless of exchange rate fluctuations,” said Chief Executive Officer and Co-Founder of IndexIQ, Adam Patti. “With the launch of these new funds, investors can now easily add tax-efficient, neutral positioning at the core of their international equity portfolios that is neither actively bullish nor bearish on the direction of the U.S. dollar or foreign currencies.”

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