BlackRock launches currency hedged ETF for Europe

BlackRock has launched an ETF that invests in large- and mid-cap stocks from developed European Economic and Monetary Union countries and has a built-in US dollar currency hedge.

The iShares MSCI EMU USD Hedged Ucits ETF (EMUU) tracks an index containing approximately 240 stocks from 10 developed countries that are within the European Economic and Monetary Union.

The impact of fluctuations in the Euro on an investor’s total return is reduced by using a US dollar hedge. The fund is physically replicating, purchasing and holding the underlying stocks, and has a total expense ratio of 38 basis points.

This is iShares’ first US dollar hedged European equities fund, which brings the provider’s currency hedged suite in Europe to 14 products. The range offers investors flexibility to opt for hedged or unhedged exposures – or a combination of both – in their international portfolios.

BlackRock’s Tom Fekete, head of Product for iShares in EMEA, commented: “Many investors are interested in the prospects for European stocks but want new ways to invest in a risk managed fashion. Europe has experienced a cyclical rebound from 2014 and equity valuations are attractive relative to those in the US. At the start of 2015, corporate earnings revisions in Europe turned positive for the first time since 2010.”

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