U.S. Investors Get Currency-Hedged Solutions to Leading International Semiconductor Names, Toyota Motors with New ADRhedged(TM) ETFs from Precidian Investments
MWN-AI** Summary
Precidian Investments has recently expanded its suite of currency-hedged exchange-traded funds (ETFs) by launching four new ADRhedged™ ETFs, bringing their total offerings to 11. These innovative financial products are designed to provide U.S. investors with hedged exposure to some prominent international companies in the semiconductor sector and automotive industry, addressing the growing global demand for enhanced computing power.
The newly introduced ETFs include STMicroelectronics NV ADRhedged™ (STHH), Arm Holdings PLC ADRhedged™ (ARMH), ASML Holding NV ADRhedged™ (ASMH)—all leading semiconductor manufacturers based in Europe—and Toyota Motor Corp ADRhedged™ (TMH), marking Precidian's first offering from Japan. Stuart Thomas, Founding Principal at Precidian Investments, emphasizes that while international equities afford investors access to top-tier companies, they also often carry added currency exposure risks which have largely gone unaddressed. The ADRhedged™ ETFs aim to mitigate these risks by providing a straightforward, cost-effective solution.
Since the launch of its initial ETFs last October, Precidian has been responsive to investor demand, subsequently offering new products in sectors like software, energy, and pharmaceuticals. The company has also received approval from the SEC to introduce an additional 37 ADRhedged strategies, demonstrating a commitment to growing its offerings amid an environment characterized by geopolitical tensions and trade volatility.
Dan McCabe, Chief Executive Officer at Precidian Investments, asserts the importance of built-in currency hedging in today’s unpredictable market. As investors seek smarter, innovative ways to capture growth potential globally, Precidian is poised to redefine global investing strategies. For more information on their offerings, visit their website at adrhedged.com.
MWN-AI** Analysis
Precidian Investments has expanded its currency-hedged ETF offerings with four new ADRhedged™ funds, bringing the total to 11. This innovative suite addresses the significant demand from U.S. investors seeking exposure to international equities while mitigating the risks associated with currency fluctuations. The new ETFs target leading players in the semiconductor industry, such as STMicroelectronics, Arm Holdings, and ASML Holding, alongside Toyota Motor Corp, a prominent automaker in Japan.
The introduction of these ETFs underscores a strategic response to market volatility characterized by geopolitical tensions and unpredictable currency movements. As international equities can serve as a robust avenue for diversification, housing significant growth potential, the additional layer of currency hedging aims to alleviate concerns associated with exchange rate variances. This is particularly pertinent since American Depositary Receipts (ADRs) expose investors to foreign currency risk inadvertently.
Investors should consider these factors when evaluating the new offerings. The impact of currency hedging can be variable; while it might protect against depreciation in foreign assets, there can be instances of imperfect correlations, potentially affecting the overall performance of these funds. Furthermore, the concentration risk associated with investing in single issuers and non-diversified funds compounds the need for careful portfolio assessment.
For investors aiming to tap into the future of computing and automotive innovation without the headache of currency risk, Precidian's ADRhedged™ ETFs present a promising opportunity. As always, prospective investors should analyze individual investment goals, review associated risks, and consider consulting with a financial advisor to ensure these products align with their overall strategy.
In conclusion, Precidian's advances provide unique solutions, fostering a smarter approach to global investing amidst uncertainties in foreign markets.
**MWN-AI Summary and Analysis is based on asking OpenAI to summarize and analyze this news release.
Precidian Investments , a recognized leader in next-generation financial products, has added four new ADRhedged™ ETFs to its product suite, bringing the total to 11 currency-hedged ETFs. The new ETFs provide currency-hedged exposure to some of the leading European-based semiconductor manufacturers, addressing the growing global demand for greater computing power. Additionally, the lineup includes Precidian’s first Japanese offering providing currency-hedged exposure to Toyota Motor Corp, one of the most widely held American Depositary Receipts (ADR)s in the U.S.
The four new ADRhedged™ ETFs, now trading on Cboe, include:
- STMicroelectronics NV ADRhedged™ (STHH) : STMicroelectronics, a multinational semiconductor manufacturing and design firm based in Geneva, Switzerland.
- Arm Holdings PLC ADRhedged™ (ARMH) : Arm Holdings, a British semiconductor and software design company.
- ASML Holding NV ADRhedged™ (ASMH) : ASML Holding, a leading supplier of critical components for computer chips, based in the Netherlands.
- Toyota Motor Corporation ADRhedged™ (TMH) : Toyota Motor Corporation, a multinational automotive manufacturer based in Japan.
“International equities provide investors access to world-class companies, but many investors, and even financial advisors, purchasing these names through American Depositary Receipts may not realize they are also taking on an additional variable of currency exposure,” said Stuart Thomas, Founding Principal at Precidian Investments. “While currency fluctuations can impact performance in either direction, the ultimate challenge has been that this risk has largely been unaddressed. Our strategies aim to solve this through a simple, cost-effective way delivering hedged exposure to some of the most in-demand names outside of the U.S.”
Following the October launch of its first offerings, Precidian introduced four additional ETFs in January, expanding access to companies in the software, energy, and pharmaceuticals industries across Europe and the UK. Looking ahead, Precidian continues to identify opportunities to grow its ADRhedged™ lineup in response to investor demand for currency-hedged solutions and has received approval from the SEC to launch an additional 37 ADRhedged strategies.
“At Precidian, we are committed to providing investors with smarter ways to capture the high-growth potential of the world’s most innovative companies,” said Dan McCabe, Chief Executive Officer at Precidian Investments. “In today’s environment, marked by geopolitical tensions, trade volatility, and unpredictable currency movements, having a built-in currency hedge is more critical than ever. We see significant opportunities to expand our fund offerings and redefine how investors approach global investing.”
To learn more about Precidian and its ADRhedged™ lineup, visit: https://adrhedged.com/
About Precidian
Precidian Investments® is an industry leader in the creation of innovative financial products, specializing in exchange-traded fund (ETF) and mutual fund development, and associated trading and pricing technologies.
Disclosures
Investors should consider the investment objectives, risks, charges and expenses carefully before investing. For a prospectus or summary prospectus with this and other information about the Fund, please call (844) 954-5333 or visit our website at www.adrhedged.com . Read the prospectus or summary prospectus carefully before investing. As with any investment, you could lose all or part of your investment in the Series, and the Series performance could trail that of other investments.
Market Risk. The prices of the securities in the Series are subject to the risk associated with investing in the stock market, including sudden and unpredictable drops in value. An investment in the Series may lose money.
Currency Hedging Risk. Because changes in foreign currency exchange rates affect the value of ADRs, the Series enters into the Currency Hedge Contract in order to seek to minimize the impact of fluctuations in the exchange rate between the U.S. dollar and the Local Currency. While this approach is designed to minimize the impact of currency fluctuations on Series returns, it does not necessarily eliminate the Series exposure to the Local Currency. Currency hedges are sometimes subject to imperfect matching between the Currency Hedge Contract and the currencies that the contract intends to hedge, and there can be no assurance that the Currency Hedge Contract will be effective. The return of the Currency Hedge Contract will not perfectly offset the actual fluctuations between the Local Currency and the U.S.
Currency Swap Risk. In order to hedge currency risk, the Series enters into a Currency Hedge Contract. The Currency Hedge Contract is subject to market risk, risk of default by the other party to the transaction, known as “counterparty risk,” and risk of imperfect correlation between profit or loss on the Currency Hedge Contract and the underlying currency exchange rate
Issuer Concentration Risk. Because the Series only invests in the ADRs of the Company and the Currency Hedge Contract, the Series may be adversely affected by the performance of the Company, subject to increased price volatility and more susceptible to adverse economic, market, political or regulatory occurrences affecting the Company or industry.
Foreign Market Risk. Because non-U.S. exchanges may be open on days when the Series does not price its Shares, the value of the underlying securities of the ADRs in the Series portfolio may change on days when Shareholders will not be able to purchase or sell the Series Shares, regardless of whether there is an active U.S. market for Shares.
Non-Diversification Risk. The Series is non-diversified and holds Portfolio Securities of only one particular issuer. As a result, the Series may have greater volatility than other diversified funds
Management Risk. The Series is subject to the risk that the Manager’s investment management strategy, the implementation of which is subject to a number of constraints, may not produce the intended results.
New Series Risk. As of the date of this prospectus, the Series has no operating history and currently has fewer assets than larger funds. Like other new funds, large inflows and outflows may impact the Series market exposure for limited periods of time. This impact maybe positive or negative, depending on the direction of market movement during the period affected.
Distributor: Foreside Fund Services, LLC
View source version on businesswire.com: https://www.businesswire.com/news/home/20250314306174/en/
Media Contact:
Trevor Davis, Gregory FCA for Precidian
215-475-5931
[email protected]
FAQ**
How does Precidian Investments anticipate the performance of Team Health Holdings Inc. TMH in comparison to other companies in its ADRhedged™ ETF lineup, especially in the current global economic climate?
What strategies does Precidian have in place to address potential currency hedging risks associated with Team Health Holdings Inc. TMH within the new ADRhedged™ ETFs?
Given the recent addition of Team Health Holdings Inc. TMH to the ADRhedged™ lineup, what are the projected market trends in the automotive sector that might influence its performance?
How does Precidian plan to manage issuer concentration risk for Team Health Holdings Inc. TMH amid potential geopolitical tensions and market volatility?
4. Can you explain how the performance of ARM Holdings PLC ADRhedged™ ETF (ARMH) may be impacted by currency fluctuations compared to other products in Precidian’s lineup?
**MWN-AI FAQ is based on asking OpenAI questions about ARM Holdings plc (NASDAQ: ARMH).
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