RT Journal Article
SR Electronic
T1 How to Implement Hedging Strategies Using Equity and Fixed-Income ETFs
JF ETFs and Indexing
FD Institutional Investor Journals
SP 149
OP 153
VO 2012
IS 1
A1 Valérie Baudson
YR 2012
UL http://guides.pm-research.com/content/2012/1/149.abstract
AB The use of ETFs in Europe has become more widespread and sophisticated thanks to rapid product development over the past 10 years. Since 2000, ETFs have grown from a handful of products offering access to mainly developed country equity markets to become a major industry in their own right, representing the main asset classes, geographic regions, sectors, investment themes, and strategies. Today, investors can implement a number of asset allocation strategies to help them to navigate through increasingly challenging market conditions and may use ETFs as effective tools to mitigate portfolio risks. This article examines how ETFs can offer solutions to help investors manage risk in fixed income, taking into account inflationary and interest rate risk. On the equity side, the article explores recent innovations that help to reduce currency risk.