Timing is everything, and Deutsche Bank knows it, but can the timing last?

This Friday, the company plans to launch the db X-trackers MSCI Germany Hedged Equity Fund (DBGR) — right before WisdomTree rolls out a similar product, IndexUniverse reports.

Considering how well the WisdomTree Japan Hedged Equity Fund (DXJ) has done — blossoming into a $100 million fund this year after ending 2012 with only $5 million — the ETF has reason to be hot to trot. But lightning doesn't often strike twice, and there's reason to wonder whether Deutsche’s latest scheme will triumph, and whether other banks should follow suit.

It all depends on the dollar. If the dollar doesn't pick up in value, as Deutsche Bank believes it will in coming years, then owning stocks in foreign currency won't be so desirable, and the currency-hedged ETF trend will lose momentum, if not die altogether.  

Edited by: Nicole Spector


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