HEDJ Profile
WisdomTree Europe Hedged Equity Fund is an exchange-traded fund (ETF) focused on providing investors with targeted exposure to European equity markets while mitigating currency risk. The fund commits at least 95% of its total assets, excluding collateral from securities lending, to investments in securities that are constituents of its underlying index or have similar economic characteristics. This approach ensures that the fund closely tracks the performance of the index it aims to replicate.
The index tracked by the fund primarily includes European equity securities, with a particular emphasis on shares of companies that are major exporters. This focus targets firms that derive a significant portion of their revenues from international markets, which can benefit from a stronger performance in global trade. By focusing on exporters, the fund seeks to capture the growth potential within Europe's export-oriented sectors.
To address currency exposure, the fund employs a currency-hedging strategy designed to neutralize fluctuations between the U.S. dollar and the euro. This is achieved through the use of forward currency contracts, which help to mitigate the impact of currency volatility on the fund's returns. This hedging strategy allows investors to gain exposure to European equities without being adversely affected by changes in the exchange rate between the dollar and the euro.
The WisdomTree Europe Hedged Equity Fund is classified as non-diversified, meaning it does not concentrate its investments in a narrow range of securities or sectors. This classification allows the fund to spread its investments across a broad array of European companies, thereby reducing the risk associated with individual securities and sectors. The fund's strategic focus on export-driven companies, combined with its currency hedging, aims to offer investors a balanced approach to accessing European equity markets while managing currency risk.
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