US Tariff Policies and Shifts in ETF Investment Strategies

Amid the strong US dollar resulting from President Donald Trump's tariffs, investors in unhedged USD ETFs are reaping the benefits of the dollar's appreciation. Unhedged ETF strategies have become more advantageous due to increased currency volatility, highlighting the disparate impact on investment outcomes. Conversely, hedged ETF investors are experiencing relatively poor returns in this economic climate. Total net assets of 26 domestically listed currency-hedged ETFs stand at 3.6022 trillion won, with the S&P500 and Nasdaq-focused hedged ETFs recording 22.64% and 17.29% returns, respectively.
Meanwhile, Lee Joon-jae, a manager at Samsung Asset Management, anticipates sustained growth in the US stock market despite tariff bombs and other market shocks. Notably, the KODEX Mirai America Ants ETF posted high returns last year due to its unique monthly rebalancing management strategy. This ETF is primarily composed of US stocks frequently invested in by Korean retail investors, effectively incorporating surging stocks ahead of time for optimal performance.
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Top US ETF Manager Says 'Continuing in America Despite Tariff Bombs and Deep Cycles' - MoneyToday"The U.S. stock market will show volatility for a while due to the Trump administration's tariff bombs and the shock of deep cycles. However, since the tariff bombs are expected issues and deep cycles are not long-term risk factors, the US market will remain robust this year," said Lee Jun-jae, a manager from Samsung Asset Management, in an interview with MoneyToday, diagnosing the recent uncertainties surrounding the US stock market.
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Strengthening Strong Dollar... Retail Investors Sigh Over Currency-Hedged ETF - E-TodayInvestment yields from $3.6 trillion in US index and stock currency-hedged ETFs fall 14%p short compared to currency-exposed products, intensified pressure from 'King Dollar' due to Trump's tariff shock ▲ US dollar bills are seen. Reuters