WisdomTree Launches Korea Hedged Equity Fund

By ExpatBriefing.com Editorial 15 November, 2013

WisdomTree, an exchange-traded fund (ETF) sponsor and asset manager, announced on November 07, 2013 the launch of a new ETF, the WisdomTree Korea Hedged Equity Fund (DXKW), on the Nasdaq Stock Market.

The new fund will provide exposure to Korean equity markets while hedging exposure to the Korean won, according to a press release from WisdomTree. It has an expense ratio of 0.58 percent.

In launching the new fund, WisdomTree hopes to tap into South Korea's flourishing export-driven economy, which in 2012 was nearly twice as large as that of many developed nations, including Switzerland.

Jeremy Shwartz, the director of research at WisdomTree, said: "For any exporter-focused country, a strengthening currency can be a competitive disadvantage in the global market place...If the South Korean won declines relative to the yen – and for that matter, the US Dollar – we believe this would be a boon for South Korea's equities."

He went on to say: "We believe DXKW can offer exposure to the growth potential of South Korea's exporters while helping to protect US investors from potential declines in the Korean won against the US dollar."

Tags: Investment | Investment Funds | Hedge Funds | Korea, South | Currency | Trade | Expats |


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