Yen-Hedged ETF Suffers Exodus of Cash From Carry-Trade Fiasco
- WisdomTree’s DXJ saw biggest weekly outflow since 2018
- ETF bets on Japanese stocks while hedging out yen volatility
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Investors spooked by the yen carry-trade blowup have pulled cash from a Japan-focused stock ETF that strips out moves in the country’s currency.
The WisdomTree Japan Hedged Equity Fund (ticker DXJ) saw an outflow of more than $400 million last week, the most since 2018, data compiled by Bloomberg show. At the same time, short interest as a percentage of shares outstanding on the ETF rose to the highest since May, according to data from IHS Markit Ltd.