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.
Remember to look for the current price, volume, performance and top 10 holdings of IHDG on ETFU.com.
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Jim Woods is a 30-plus-year veteran of the markets with varied experience as a broker, hedge fund trader, financial writer, author and newsletter editor.
His books include co-authoring, “Billion Dollar Green: Profit from the Eco Revolution,” and “The Wealth Shield: How to Invest and Protect Your Money from Another Stock Market Crash, Financial Crisis or Global Economic Collapse.” He’s also ghostwritten many books and articles, as well as edited content for some of the investment industry’s biggest luminaries. Read more about Jim Woods.
