From Seekingalpha · The Sunday Investor · · 40s
LVHI ETF Currency Hedging Boosts Returns
LVHI ETF's currency hedging strategy boosted returns by 64 percentage points but carries risks.
In brief
LVHI ETF's currency hedging strategy boosted returns by 64 percentage points but carries risks. Franklin International Low Volatility High Dividend Index ETF's currency hedging strategy contributed 64 percentage points to returns but investors face interest rate exposure risks. Originally reported by Seekingalpha.
Initial Coverage Rating
Franklin International Low Volatility High Dividend Index ETF is rated a hold in initial coverage.
Currency Hedging Impact
Currency hedging contributed roughly 64 total return percentage points over the last decade.
Interest Rate Exposure
Currency forward contracts embed interest rate differentials, exposing investors to changes in them.
The main idea
Franklin International Low Volatility High Dividend Index ETF's currency hedging strategy contributed 64 percentage points to returns but investors face interest rate exposure risks.
