Hedging Euro Exposure

HEDJ vs. EZU effectively neuters the currency differentials per the weekly chart.

A subscriber just asked my thoughts on Euro exposure and how to hedge it.  As usual for me, simplest is best; short the Euro (or FXE) and long USD (RYSBXafter a USD correction.

As part of response I also worked up a chart showing hedged vs. unhedged European equity funds along with USD. HEDJ vs. EZU effectively neuters the currency differentials per the weekly chart.

hedj.ezu.usd

Disclosure:

None.

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