Investors may want to consider hedging their emerging market plays, according to one exchange-traded fund expert.
Ben Slavin, global head of ETFs and managing director at BNY, said that while there have been notable inflows into Indian, European and Japanese ETFs, investors should account for the strength of the U.S. dollar.
The iShares MSCI Japan ETF (EWJ) gives investors exposure to Japanese equities but does not account for fluctuations between the Japanese yen and the U.S. dollar.
The WisdomTree Japan Hedged Equity Fund (DXJ) , which gives exposure and accounts for fluctuations, has grown more than 20% in that same time frame.
And ETFs have those different options available for investors to allocate one way or the other," Slavin said.
Persons:
Ben Slavin, Slavin, CNBC's
Organizations:
U.S ., Japan Hedged Equity
Locations:
Japan