Market Sentiment gives a list of country-specific ETFs, but none of them handle the currency depreciation risk, which can be very significant. For example, the Japanese yen has depreciated 29% against the US dollar in the past 5 years.
Here are a list of country or region-specific currency-hedged ETFs to handle this risk:
Country/Region | ETF (Ticker) | Expense Ratio | AUM
Japan | WisdomTree Japan Hedged Equity Fund (DXJ) | 0.48% | $3.9B
Europe | WisdomTree Europe Hedged Equity Fund (HEDJ) | 0.58% | $1.5B
1) Hedged ETFs to handle FX risk
Market Sentiment gives a list of country-specific ETFs, but none of them handle the currency depreciation risk, which can be very significant. For example, the Japanese yen has depreciated 29% against the US dollar in the past 5 years.
Here are a list of country or region-specific currency-hedged ETFs to handle this risk:
Country/Region | ETF (Ticker) | Expense Ratio | AUM
Japan | WisdomTree Japan Hedged Equity Fund (DXJ) | 0.48% | $3.9B
Europe | WisdomTree Europe Hedged Equity Fund (HEDJ) | 0.58% | $1.5B
EAFE | iShares Currency Hedged MSCI EAFE ETF (HEFA) | 0.35% | $5.5B
2) Countries whose stock markets have collapsed in the past: Germany, Austria, France, Japan, Russia, China
One way to avoid this risk is to diversify globally, but the other, less used, and perhaps more effective way is to short the market at the right time. https://blog.inverteum.com/p/professional-investment-strategies-need-short-component