HEWG Profile
The iShares Currency Hedged MSCI Germany ETF aims to provide investors with targeted exposure to large- and mid-capitalization companies within the German equity market, while managing currency risk. Under normal market conditions, the fund invests at least 80% of its assets in securities that are included in its underlying index, along with other investments that mirror the economic characteristics of those component securities. This strategy ensures that the fund's performance closely aligns with the index's, capturing the broader dynamics of the German stock market.
The underlying index, established by MSCI, focuses on the performance of major companies listed in Germany, representing the large and mid-cap segments of the market. The index is designed to reflect the overall performance of these segments, offering a comprehensive view of the German equity landscape. To address currency risk, the fund employs a currency hedging strategy that mitigates the impact of fluctuations between the Euro and the U.S. dollar. This hedging is executed on a monthly basis, providing investors with a consistent approach to managing currency exposure.
By incorporating a currency hedging mechanism, the fund aims to reduce the volatility that can arise from currency fluctuations, allowing investors to focus on the performance of German equities without the additional risk of currency exchange rate movements. This approach is particularly beneficial for investors who seek to gain exposure to Germany’s economic growth while minimizing the impact of currency risk on their returns.
The iShares Currency Hedged MSCI Germany ETF is part of iShares' broader range of international investment solutions, catering to investors looking to diversify their portfolios with European equities. The fund combines exposure to the German market's leading companies with a strategic currency management approach, making it a suitable option for those aiming to achieve international diversification while managing currency-related risks.
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