Currency hedging – 3 things to consider

In the past 3 years international equities ETFs available on the ASX have attracted ~$6 billion from Australian investors – with net inflows into this category growing 40% year on year since 2013. As part of continued product innovation in the Australian industry, a number of ‘currency hedged’ ETFs have now been launched. Here are 3 things to know about currency hedging over equities investments:

3 things

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A Bit Rich: Are US shares overvalued?

In light of the fact that the S&P 500 reached new record highs last week, this note re-visits the issue of United States equity market valuations. As will be shown, although low interest rates are offering some support to equity market valuations, the market still appears expensive once allowance is also made for an apparent rise in the equity risk premium.

yellen

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BetaShares Australian ETF Market Review: Half year and June 2016

The Australian exchange traded fund industry grew by 5%, or $1.1B, during the first half of 2016, despite the challenging market conditions, ending the financial year with total funds under management of $22.5B. June was especially turbulent with the Brexit vote and the Australian election all adding to ongoing volatility. Investors continued to support ETFs by investing almost $1.4B in new money into the industry during the last 6 months meaning that all the industry’s growth this half has come from structural growth, with asset price declines actually being a net negative for the industry as a whole.

The industry continues to mature during 2016 with 16 new products added and 10 closed so far this year. We expect the number of new products to grow significantly during the last half of the year in what will be another strong year for product launches.

Half Year Market Cap

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Japan Is Inexpensive — Where to Look for Performance

In BetaShares’ view, the sweeping upper house election victory this past weekend by Japan’s ruling Liberal Democratic party was a vote of confidence in Prime Minister Shinzo Abe’s economic policies and bodes well for the economy over the coming year. With this in mind, we think it is an opportune time to re-consider the case for investing in Japan. In the following blog, WisdomTree Japan CEO Jesper Koll provides his perspective on Japan from an investor’s point of view.

Japan

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Global Market Outlook July 2016: Brexit fears sink stocks

Global equities were weaker in June, largely reflecting a sharp two day reaction to the surprise Brexit decision that had been only partly recovered by month-end. US equities held up relatively well compared to those in Europe and Japan – the latter also hurt by Yen strength. Commodities and the $A were also firmer in the month, though this largely reflected gains prior to the Brexit vote, and a post-Brexit decision surge in gold prices.

brexit1

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