There was a change to the Xtrackers Global Dynamic FX Hedged Model (TR). The model sold the Xtrackers MSCI Eurozone Hedged Equity ETF ([DBEZ]) and bought the Xtrackers Emerging Markets Carbon Reduction and Climate Improvers ETF ([EMCR]).
There was a change to the Xtrackers Global Dynamic FX Hedged Model (TR). The model sold the Xtrackers MSCI Eurozone Hedged Equity ETF (DBEZ) and bought the Xtrackers Emerging Markets Carbon Reduction and Climate Improvers ETF (EMCR). DBEZ had been a holding in the model since September 2021 and gained 67.10% over that period compared to its benchmark’s, the iShares MSCE EAFE ETF (EFA), return of 47.89%. The trade into EMCR shifts the holdings from 100% developed markets to an 80/20 split between developed and emerging markets. While the currency hedged equity space has fallen out of favor a bit as the US Dollar has been in a steady downtrend for nearly a year, the trade out of DBEZ leaves the portfolio with only one currency hedged fund left, the Xtrackers MSCI Japan Hedged Equity ETF (DBJP). Therefore, the model is in a good position to take advantage of a falling dollar environment moving forward.
