$iShares 20+ Yr US Treasury Bd JPYHdg ETF (2621.JP)$ The rea...
The reason why the iShares U.S. 20-year Plus ETF (with currency hedge) is trending upwards is that bond prices are inversely correlated with interest rates, leading to an increase in bond prices due to expected lower interest rates.
Due to their high sensitivity to interest rate changes, super long-term bonds over 20 years have a tendency to significantly increase in price during periods of declining interest rates.
Due to their high sensitivity to interest rate changes, super long-term bonds over 20 years have a tendency to significantly increase in price during periods of declining interest rates.
In this ETF, by conducting transactions (currency futures reservations) that reserve exchange rates to be exchanged in the future, the impact of exchange rate fluctuations is mitigated, reducing the exchange rate risk between the U.S. dollar and the yen. This prevents a decrease in asset value during periods of a strengthening yen.
With currency hedging, the price movement of the ETF mainly reflects the price movement of U.S. bonds, enabling investment focused on U.S. interest rate trends.
With currency hedging, the price movement of the ETF mainly reflects the price movement of U.S. bonds, enabling investment focused on U.S. interest rate trends.
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