Otmane El Rhazi from Investor's Business Daily - Investing RSS.
Lately, we have been talking with a lot of clients about our family of hedged equity ETFs, each of which invests in a basket of foreign equities and then neutralizes, or hedges, the exposure to the currency. One common question we hear is, "Can't I achieve the same thing by investing in a basket of ADRs?" It is a common misconception that, because an ADR is traded in U.S. dollars in the United States, there is no exchange-rate risk. But that's not the
Lately, we have been talking with a lot of clients about our family of hedged equity ETFs, each of which invests in a basket of foreign equities and then neutralizes, or hedges, the exposure to the currency. One common question we hear is, "Can't I achieve the same thing by investing in a basket of ADRs?" It is a common misconception that, because an ADR is traded in U.S. dollars in the United States, there is no exchange-rate risk. But that's not the
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