NYSEARCA:DBEF - NYSE Arca - US2330512003 - ETF - Currency: USD
European fund managers are bullish on stocks, with 3 top ETFs to consider: SPDR EURO STOXX 50 (FEZ), Vanguard FTSE Europe (VGK), Xtrackers MSCI EAFE Hedged Equity (DBEF)
UBS Global Wealth Management, which oversees more than $2.48% in invested assets, cut its stock positioning relative to high-grade bonds in order to reduce exposure to political uncertainty and trade
A few ETFs will continue to benefit if the Fed raises rates as expected, while a few would be severely impacted. Let’s have a look at them.
All eyes are currently on the crucial two-day FOMC meeting as the central bank is highly anticipated to raise interest rates for the second time this year by 25 bps.
Apart from the esoteric realm of currency hedging, rising rates have also caused rates to, well, rise on short-term debt funds.
From a big-picture standpoint, the Fed still remains very accommodative. We still have an upswing in the global earnings cycle that supports international equities whose margin of safety is higher compared to U.S. stocks.
All eyes are currently on the crucial two-day FOMC meeting slated to start today as the central bank is highly anticipated to raise interest rates by a quarter percentage point to 1.25-1.5% for the third time this year.
Exchange-traded funds designed to minimize the currency impact of non-U.S. stocks have seen sharp outflows thus far in 2017, as their “hedging” strategies has wound up serving as a headwind in a period of dollar weakness.