10 EVIDENZIATORI

MSCI Launches Daily Hedged Indices

MSCI Inc., announced the launch of new daily hedged indices, as part of the MSCI Hedging and Currency Indices family. The MSCI Daily Hedged and MSCI Hedged Indices aim to represent the returns of an MSCI…


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parent equity index with its currency risk hedged back to a single “home country” currency. The index methodology seeks to reduce the return effects of currency fluctuations in the parent index.

The MSCI Daily Hedged Indices hedge each foreign currency in the index back to the home currency by “selling” each foreign currency forward at the TN (tomorrow next) forward rate each day.  
“Daily hedged indices are used strategically by investors who may want to gain exposure to foreign equity markets, but who also want to mitigate the risk of currency fluctuations,” said Diana Tidd, Managing Director and Head of the MSCI Index Business in the Americas.
The MSCI Daily Hedged Indices aim to track the parent index in local currency terms more closely than the MSCI Hedged Indices which are hedged on a monthly basis; however, they incur the expense of more frequent hedging.
Source: ETFWorld – Msci


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