ETFs Forced to Get ‘Smart’ Hedging Dollar With Easy Money Gone
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The most popular strategy in the $2.1 trillion U.S. market for exchange-traded funds is losing its luster, leading the world’s biggest asset managers to search for ways to keep the money flowing.
ETFs that hedge against currency risk have attracted just $5.9 billion since the end of June as a rally in the greenback slowed. That compares with the $41 billion they lured in the first six months of the year, when a surging dollar imperiled international returns for U.S. investors.