Investors are snapping up ETFs that hedge against currency swings

Currency-hedged funds have proved popular with U.S. investors hoping to take advantage of aggressive monetary policies in Europe and Japan, which sent stocks soaring and currencies plunging against the dollar.

The dollar rally is proving a benefit for an exchange-traded fund provider backed by former hedge-fund manager Michael Steinhardt.

WisdomTree Investments Inc. has gained 33% this year, driven by the success of two exchange-traded funds that allow investors buy European and Japanese stocks while avoiding the decline within the currencies. The business\’s European fund has attracted US$7.4 billion in 2015, probably the most of any U.S. ETF, and the Japan fund has won US$2.2 billion, according to data compiled by Bloomberg.

\”WisdomTree has caught lightning inside a bottle,\” Matt Hougan, president of, a San Francisco-based research firm, said in a telephone interview.


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