IQ 50 Percent Hedged FTSE International ETF (HFXI)

Overview

The IQ 50 Percent Hedged FTSE International ETF (HFXI) provides exposure to international equities while hedging 50% of its currency exposure back to the US dollar. This approach aims to mitigate the impact of currency fluctuations on investment returns, focusing on developed markets outside the US. Asset allocation is primarily international equities with a currency hedging component. The investment strategy aims to track the FTSE Developed ex US/Canada 50% Hedged to USD Index.

Reputation and Reliability

IndexIQ is known for its innovative approach to ETF creation, especially in the field of alternative investments and currency hedging.

Management Expertise

IndexIQ has a team of experienced professionals with expertise in portfolio management, currency hedging strategies, and index tracking.

Goal

The primary investment goal is to provide investment results that correspond generally to the price and yield performance of the FTSE Developed ex US/Canada 50% Hedged to USD Index.

Investment Approach and Strategy

Strategy: The ETF aims to track the performance of the FTSE Developed ex US/Canada 50% Hedged to USD Index.

Composition The ETF holds stocks from developed markets outside the U.S. and Canada, with a mechanism to hedge 50% of the currency exposure back to the U.S. dollar.

Market Share: HFXI's market share within the currency-hedged international equity ETF segment is moderate.

Total Net Assets (AUM): 67800000

Key Competitors

• DBEF (Xtrackers MSCI EAFE Hedged Equity ETF)
• HEFA (iShares Currency Hedged MSCI EAFE ETF)

Competitive Landscape

The currency-hedged international equity ETF industry is competitive, with several established players. HFXI benefits from its focus on a 50% hedge ratio, which may appeal to investors seeking a balance between currency risk mitigation and participation in currency movements. DBEF and HEFA offer more complete currency hedging and higher AUM, potentially providing more liquidity but less flexibility in currency exposure.

Historical Performance: Historical performance data is readily available from the ETF's provider and financial data websites.

Benchmark Comparison: The ETF's performance is closely compared to the FTSE Developed ex US/Canada 50% Hedged to USD Index to assess tracking effectiveness.

Expense Ratio: 0.25

Average Trading Volume

The ETF's liquidity is moderate, with average daily trading volumes generally reflecting its AUM and investor interest.

Bid-Ask Spread

The bid-ask spread is typically competitive, influenced by trading volume and market conditions.

Market Environment Factors

Economic indicators in developed markets, currency exchange rates, global trade policies, and investor sentiment influence HFXI's performance.

Growth Trajectory

HFXI's growth is tied to the demand for currency-hedged international equity exposure, potentially influenced by global economic uncertainty and currency volatility.

Competitive Edge

HFXI's competitive edge lies in its 50% currency hedging strategy, providing a middle ground between full hedging and unhedged exposure. This approach allows investors to mitigate a portion of currency risk while still participating in potential currency appreciation. Furthermore, its association with IndexIQ's reputation for innovative ETF products and strategic index selection is also an advantage, attracting investors seeking sophisticated investment solutions. It sets itself apart in the market due to its differentiated approach compared to other competitors.

Volatility

HFXI's volatility is affected by fluctuations in international equity markets and currency exchange rates. Its 50% hedging strategy moderates but doesn't eliminate currency-related volatility.

Market Risk

The underlying assets are subject to market risk associated with international equities, including economic downturns, geopolitical events, and sector-specific challenges.

Ideal Investor Profile

The ideal investor is one seeking international equity exposure with a partial hedge against currency fluctuations. Investors who are concerned about the impact of currency movements on their international investments would find this ETF appealing.

Market Risk

HFXI is suitable for long-term investors seeking diversified international equity exposure with a degree of currency risk mitigation.

The IQ 50 Percent Hedged FTSE International ETF (HFXI) provides exposure to developed market equities outside the US and Canada while hedging 50% of its currency exposure. It aims to track the FTSE Developed ex US/Canada 50% Hedged to USD Index, offering investors a balanced approach to international investing and currency risk management. The ETF suits investors who want international exposure but are concerned about the volatility of unhedged foreign currencies. Its moderate AUM and trading volume indicate adequate liquidity, while the expense ratio is competitive within its category. HFXI provides a unique approach to international investing that could appeal to investors with specific currency hedging preferences.

Data Sources:

• IndexIQ Website
• ETF.com
• Morningstar

Disclaimers:

The data provided is for informational purposes only and does not constitute investment advice. Investors should conduct their own research and consult with a qualified financial advisor before making any investment decisions. Market share data may not be exact and are based on the most recent available information. Performance data is not indicative of future results.