Summary
A currency-hedged index is designed to represent returns for global index investment strategies that involve hedging currency risk, but not the underlying constituent risk. The currency-hedged strategy indices eliminate the risk of currency fluctuations at the cost of potential currency gains. An investor who will receive a payment in a foreign currency at a future date and expects the domestic (hedged) currency to appreciate against that foreign currency, can enter a forward contract to sell the foreign currency in the future at a predefined exchange rate. If, at the maturity of the forward contract, the domestic currency has appreciated against foreign currency, the investor can make a profit by selling the payment proceeds (in foreign currency) at a lower rate than the one prevailing on the market. The STOXX Developed World Universal USD EUR Exposure Monthly Hedged is designed to have 40% USD exposure and 40% EUR exposure hedged to GBP. All other currencies remain unhedged.
Index Guides, Benchmark statement, and other reports are available under the Data tab.