“It’s a game changer,” Steve Blumenthal, CEO of CMG Capital Management Group, told Investor’s Businsess Daily in the story Three Best Reasons To Invest In The Currency-Hedging ETFs.
It’s a shot in the arm for Japan’s perennially listless economy. But the stimulus makes for a bearish outlook on the Japanese currency. For U.S. investors, a weakening yen could significantly erode returns on their investments in that nation.
Fortunately, there’s a simple way for people to get exposure to Japan but mitigate risk of the dollar’s potential rise against the yen: exchange traded funds. Several hedged ETFs let investors buy a rally in Japanese stocks without getting hit on currency moves.
“It’s double bang for the buck,” said Blumenthal, who invests in WisdomTree Japan Hedged Equity (ARCA:DXJ), up 6% so far in 2014.
Read to story in Investor’s Business Daily: Three Best Reasons To Invest In The Currency-Hedging ETFs