Worried that a strong dollar would gum up your global junk bond investments? Well, here’s something that might cheer you up.
BlackRock has just expanded its currency-hedged ETF lineup with the iShares Currency Hedged Global ex USD High Yield Bond ETF, a fund that “seeks to reduce the impact of foreign currencies, relative to the U.S. dollar, on your allocation to high yield corporate bonds issued by companies from around the world (excluding the U.S.).”
With central banks around the world causing all sorts of mayhem in FX markets, these currency-hedged ETFs seem to be unusually popular the past few years, even drawing $48 billion this year alone.
Their granddaddy, the nearly $18 billion WisdomTree Japan Hedged Equity Fund, still remains one of the preferred ways for investors to get exposure to Japan, according to Benzinga.
Photo: GotCredit