Exchange-Traded Funds (ETFs) have transformed the investment landscape by providing diversified exposure to various sectors and asset classes. In this article, we will conduct an in-depth comparison between two prominent ETFs: HEWG (iShares Currency Hedged MSCI Germany ETF) and FGM (First Trust Germany AlphaDEX Fund). We'll explore a range of factors including tickers, full names, issuers, sectors, top holdings, capitalization, strategy, tracking, and exposure.
HEWG and FGM are distinct ETFs that offer different investment strategies within the German market. While HEWG aims to provide exposure to German equities while hedging against currency fluctuations, FGM utilizes a unique AlphaDEX methodology to select and weight stocks from the German market. These differences in approach lead to varying risk and return profiles, which we will delve into in the following sections.
HEWG primarily focuses on German large and mid-cap companies while hedging against fluctuations between the Euro and the U.S. Dollar. On the other hand, FGM employs the AlphaDEX methodology, which selects stocks from the NASDAQ AlphaDEX Germany Index based on various growth and value factors. Understanding the sectors and top holdings of these ETFs is crucial for investors seeking exposure to the German market.
HEWG overlap HEWG VS FGM: A Comprehensive Comparison of ETFs
HEWG has a substantial asset under management (AUM), signifying its popularity among investors looking for currency-hedged exposure to German equities. FGM's strategy is centered around the AlphaDEX methodology, which evaluates stocks based on growth and value factors, potentially resulting in a unique portfolio composition. Investors must carefully assess the capitalization and strategy differences to align their investment goals.
HEWG aims to provide investors with exposure to German equities while minimizing the impact of currency fluctuations. This is achieved through currency-hedged strategies that can affect returns. FGM, with its AlphaDEX approach, seeks to enhance risk-adjusted returns by selecting stocks based on growth and value factors. Understanding the tracking methods and exposure of these ETFs is vital for investors seeking specific market exposure.
HEWG and FGM represent two unique approaches to investing in the German market. For investors looking to gain deeper insights into holdings, correlations, overlaps, and other critical details, utilizing tools like ETF insider can be invaluable. With its user-friendly application, ETF insider provides comprehensive information on these and other financial instruments, assisting investors in making informed decisions.
Disclaimer: This article does not offer any investment advisory services.
Sources:
HEWG ETF issuer
HEWG ETF official page