Investment Themes : Basics of Currency Risks & Hedging

One of the major additional risk considerations for investors is the “currency risk” associated with the portfolio. When investing in global products investors are buying securities domiciled in foreign currencies and the fluctuations of these currencies can have an impact on a portfolio’s performance. While some ETFs are exposed to the currency fluctuation of the underlying securities, other ETFs may have a “Currency Hedging” policy in place with the objective of reducing the fluctuations of currency in the investment and simply provide the returns from the underlying market. As with any investment strategy, there is a risk that the hedge strategy used will be unsuccessful. The currency policy of the ETF will have an impact on the total performance of the Fund so it is important for investors to know the currency policy of the investment products they select.

Currency Hedged ETFs From Claymore

• Claymore US Fundamental Index ETF
• Claymore Japan Fundamental Index ETF
• Claymore Broad Emerging Markets ETF
• Claymore BRIC ETF
• Claymore S&P US Dividend Growers ETF
• Claymore Global Monthly Advantaged Dividend ETF
• Claymore Advantaged High-Yield Bond ETF
• Claymore Advantaged Short Duration High Income ETF
• Claymore Gold Bullion ETF

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