Categories: CurrenciesExchange Traded Funds (ETFs)International Investing

Protection from a Stronger U.S. Dollar

Today’s column features the third-best performer among international dividend funds for the first half of 2015: WisdomTree International Hedged Dividend Growth Fund (IHDG).

IHDG seeks to provide exposure to developed market companies outside the United States or Canada while also limiting fluctuations between the value of the U.S. dollar and foreign currencies. By hedging in this way, IHDG protects potential gains from slipping away when they are converted into U.S. dollars. With investments in the United Kingdom, Japan, Switzerland, Germany, Australia and other countries, many of which are devaluing their own currency, this hedging strategy is paying off.

View the current price, volume, performance and top 10 holdings of IHDG at ETFU.com.

To secure its bronze-medal position among international dividend funds for the first half of 2015, IHDG rose 7.27% through the first six months of 2015. In addition, this fund features a 1.86%, 12-month yield. IHDG’s assets under management are $360.11 million.

As the following chart shows, the fund has fallen from its sharp rise earlier this year but is up from its pullback in early July. If you like to buy at a discount, the current price of the fund allows you such an opportunity.

IHDG’s top 10 holdings total 8.7% of its assets. Most prominent among these holdings are Novo Nordisk A/A, 2.44%; Japan Tobacco Inc, 1.58%; KDDI Corp, 1.27%; Astellas Pharma Inc., 0.77%; and Hitachi Ltd, 0.5%.

If you want to invest in an international dividend fund without worrying that your potential returns could suffer due to the currently strong dollar, WisdomTree International Hedged Dividend Growth Fund (IHDG) may be worth a look.

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Remember to look for the current price, volume, performance and top 10 holdings of IHDG on ETFU.com.

If you want my advice about buying and selling specific ETFs, including appropriate stop losses, please consider subscribing to my Successful ETF Investing newsletter. As always, I am happy to answer any of your questions about ETFs, so do not hesitate to send me an e-mail. You just may see your question answered in a future ETF Talk.

In case you missed it, I encourage you to read my e-letter column from last week about the second-best international dividend fund of 2015’s first half. I also invite you to comment in the space provided below.

Doug Fabian

Doug Fabian is the Editor of Weekly ETF Report, a free weekly e-newsletter, and the newsletter Successful ETF Investing. He’s also the host of the syndicated radio show, “Doug Fabian’s Wealth Strategies.” Doug also edits the fast-paced trading service ETF Trader’s Edge, for investors who want to take their profits to the next level. Taking over the reins from his dad, Dick Fabian, back in 1992, Doug has continued to uphold the reputation of the newsletter as the #1 risk-adjusted market timer as ranked by Hulbert’s Investment Digest. Doug became a member of the “SmartMoney 30” in 1999 — a listing of the most influential individuals in the mutual fund industry. In the feature, SmartMoney magazine exclaims that Doug is the best-known “trend follower” among the $56 billion (and growing) group of financial advisors. In 2001, Doug wrote “Maverick Investing,” published by McGraw-Hill. He also regularly appears at seminars around the country, stands out on the pages of the largest newspapers (The Wall Street Journal, The Los Angeles Times, and The New York Times), and speaks on national television (CNBC, Fox News, and Bloomberg Forum). For more than 35 years, Successful ETF Investing (formerly the Telephone Switch Newsletter and Successful Investing) has produced double-digit percentage annual gains. Doug has become known for his expert knowledge and timely use of innovative tools, such as exchange-traded funds, bear funds, and enhanced-index funds to profit in any market climate. For more information about Doug’s services, go to http://www.fabian.com/