For investors seeking a hedged portfolio that leans toward emerging market small cap and value.
The Fund seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the Morningstar® Emerging Markets Factor Tilt Hedged IndexTM (Underlying Index).
The Morningstar® Emerging Markets Factor Tilt Hedged IndexSM (the Currency Hedge Index) measures the performance of the Morningstar® Emerging Markets Factor Tilt IndexSM (the Benchmark Index) after applying a practical hedging program, limiting the effects of currency fluctuations. Hedging each foreign currency in the portfolio, relative to an investor's home currency, is a close estimation of the return a local investor can achieve. The U.S. dollar is the default home currency for the Currency Hedge Index. The Currency Hedge Index is long the Benchmark Index and short currency forwards whose notional amount is based on market capitalization of foreign currencies in the Benchmark Index. In other words, the hedge ratio, that is, the proportion of the portfolio's currency exposure that is hedged is set to 100%.