(HFXI) IQ 50 Percent Hedged FTSE - Ratings and Ratios

The IQ 50 Percent Hedged FTSE International ETF (HFXI) is designed to track an international equity benchmark comprising developed market stocks, with a currency hedging strategy that mitigates approximately half of the foreign exchange exposure relative to the US dollar on a monthly basis. This hedging approach aims to reduce the impact of currency fluctuations on the funds performance.

As an ETF, HFXI invests at least 80% of its net assets in the securities that make up its underlying index, ensuring a high degree of correlation with the benchmarks performance. The funds underlying index is composed of international stocks from developed markets, providing investors with diversified exposure to global equities.

Analyzing the technical data, we observe that HFXIs price is currently at $29.24, slightly below its 20-day Simple Moving Average (SMA) of $29.33. The 50-day SMA stands at $28.23, while the 200-day SMA is at $27.28, indicating a longer-term uptrend. The Average True Range (ATR) is $0.30, representing a daily price volatility of 1.04%. Given these indicators, we can anticipate a potential short-term correction or consolidation phase, as the price is struggling to break above the 20-day SMA.

From a fundamental perspective, HFXIs Assets Under Management (AUM) stand at $1.031 billion, indicating a moderate level of investor interest in the fund. Considering the current market conditions and the funds hedging strategy, we forecast that HFXI will continue to track its underlying index, with a potential bias towards the upside in the medium term. If the 20-day SMA is breached, we can expect a further rally towards the 52-week high of $29.72. Conversely, a break below the 50-day SMA may signal a correction towards the 200-day SMA at $27.28.

Based on the technical and fundamental analysis, our forecast suggests that HFXI will experience a moderate increase in the next few months, driven by the overall trend in international developed markets and the hedging strategys effectiveness in mitigating currency risks. Investors should monitor the funds price action relative to its SMAs and adjust their strategies accordingly.