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WisdomTree launches Germany Currency Hedged Equity UCITS ETF on the London Stock Exchange

WisdomTree Germany Equity UCITS ETF – GBP Hedged (DXGP) is the first German currency hedged equity ETF in Europe….


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DXGP provides exposure to German equities while hedging currency fluctuations between the euro and GBP

DXGP is tilted towards exporters in Germany which may benefit from periods of euro currency weakness


WisdomTree, an exchange-traded fund and exchange-traded product sponsor, has announced the launch of the WisdomTree Germany Equity UCITS ETF – GBP Hedged (DXGP) on the London Stock Exchange (LSE). 

DXGP is a unique ETF, designed to offer broad exposure to the German equity market, while hedging the currency fluctuations between sterling and the euro. This is the first German hedged equity ETF to be listed in Europe.  DXGP includes dividend paying companies, which derive less than 80% of their revenue from within Germany, thereby tilting toward exporters.  Germany is generally considered a strong exporting country, and exposure to companies with more of a global revenue base should be favourable during periods of Euro currency weakness, as exporting organisations become more competitive overseas.

Hector McNeil, Co-CEO of WisdomTree Europe commented:

“We are really pleased to be listing our first currency hedged ETF on the London Stock Exchange. The WisdomTree Germany Equity UCITS ETF – GBP Hedged (DXGP) is the first German hedged equity ETF in Europe.   We also have more than $16m of client seed capital in DXGP, indicating the early interest and demand for the strategy.”

Viktor Nossek, WisdomTree Europe’s Director of Research said:

“The German equity market offers investors a cyclical and high beta play on Europe and the global macro backdrop. DXGP seeks to exploit this investment proposition by focussing on Germany’s export oriented companies. With monetary policy divergences – from the ECB’s quantitative easing policy which is expected to last until 2016, to the BOE likely to follow the Fed in hiking interest rates-the risk of the euro weakening relative to the pound remains high.  

Of particular relevance to this strategy, German equities have historically performed better during periods of euro weakness.  However, the declining currency can be a drag on total returns for U.K. investors when converting back to the British pound.  By hedging its exposure to the euro, DXGP offers a way to more fully access the return potential of German equities in a weakening euro environment.”

With the launch of WisdomTree Germany Equity UCITS ETF – GBP Hedged (DXGP), WisdomTree Europe now has a total of eight physical UCITS ETFs listed on the LSE. WisdomTree specialises in unique ETFs and has $61.1 billion (as of 08 May 2015) of assets under management globally.

LSE Ticker

Fund NameTER (p.a.) 
 DXGPWisdomTree Germany Equity UCITS ETF – GBP Hedged0.35% 
 DEMWisdomTree Emerging Markets Equity Income UCITS ETF0.46%
 DGSEWisdomTree Emerging Markets SmallCap Dividend UCITS ETF 0.54%
 EEIWisdomTree Europe Equity Income UCITS ETF0.29%
 DFEWisdomTree Europe SmallCap Dividend UCITS ETF0.38%
 DHSWisdomTree U.S. Equity Income UCITS ETF 0.29
 DESEWisdomTree U.S. SmallCap Dividend UCITS ETF0.38%
 ISEQWisdomTree ISEQ20® UCITS ETF0.49%

Source: ETFWorld.co.uk

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