IQ FTSE International Equity Currency Neutral ETF

IQ FTSE International Equity Currency Neutral ETF (HFXI), from New York Life, tracks the FTSE Developed ex North America 50% Hedged to USD Index. As of July 31, 2026, that meant 801 holdings in developed-market stocks outside the U.S. What sets it apart is that it hedges about half of its foreign currency exposure, which softens the effect of the dollar's swings. The trade-off is cost: 0.20% a year, compared with a 0.08% average for similar funds.

• Over the year to Oct 27, 2026, HFXI returned +17.6%, 2nd of 9 among similar funds.
• Its 5-year annualized return was +11.6% and its 10-year +10.9%.
• In the 2020 COVID crash it fell 31.6% and regained its old high 8 months after the low.
• Its worst full calendar year was 2018 (-12.7%); its best was 2025 (+30.1%).
• The deepest fall in its price history was 32.4% (Jan 17, 2020 to Mar 16, 2020), recovered by Nov 20, 2020.

As of Jul 31, 2026, the fund held 801 securities; the ten largest made up 16.35% of assets.

• Over the three months to Jul 31, 2026, investors added a net $391.5M (creations minus redemptions, per the N-PORT report).
• Monthly total returns reported for that quarter: +6.09%, +0.87%, -0.91%.

HFXI is an index fund. It doesn't pick stocks. It follows an index built by FTSE International Ltd. and normally keeps at least 80% of its assets in that index's investments. The index holds mostly large and mid-sized companies. It weights them by float-adjusted market value, meaning the companies whose shares available to trade are worth the most get the biggest weights. As of June 30, 2026, it covered 24 developed-market countries, and financials, industrials and technology were its main sectors. As of July 31, 2026, the largest positions were Samsung Electronics (3.7%), SK Hynix (2.6%) and ASML (2.4%). The top 10 made up 16.35% of assets. Japan was 23.35% of the fund, the UK 12.29% and South Korea 9.6%.

The fund's distinctive feature is its currency hedge. Each month, the index sells about half of the fund's foreign-currency value forward for one month, at a price agreed in advance. A forward contract is a deal to swap currencies at a set rate on a future date. To copy this, the fund uses currency forwards and futures. As of July 31, 2026, it held 127 derivative positions, with Morgan Stanley as a listed counterparty.

When foreign currencies rise against the dollar, HFXI should trail a similar fund without a hedge. When they fall, it should do better. Hedges may not match the risk exactly, and a counterparty could fail to pay. Portfolio turnover was 14%.

• HFXI charges 0.2% a year, versus an average of 0.08% for the similar funds below (8th of 9, cheapest first).
• Of that, 0.19% is the management fee; the rest covers other fund expenses.
• Using the prospectus's standard example, $10,000 invested would cost about $20 in the first year and $255 over 10 years (assuming a 5% annual return).

It adds roughly 800 developed-market companies outside the U.S. to a portfolio, with about half of the currency swings hedged away, though it still falls when stock markets fall.

HFXI could spread a U.S.-heavy portfolio across Japan, Europe, South Korea and Australia while damping the currency effect. It is not a shelter in a sell-off. Its deepest drop was 32.4%, from January 17 to March 16, 2020, and it took about eight months to recover. In the 2022 bear market it fell 22.2% and took about 8.5 months to regain its high. Its weakest calendar year was 2018, when it lost 11.95%. The fund launched in 2015, so it has no record from 2008. Someone who had to sell shares during those stretches would have locked in losses. The trailing 12-month yield was 3.19% as of October 27, 2026, paid quarterly. The 0.20% annual cost is higher than the 0.03% charged by VEA or SPDW. Past results don't predict the future, and a plan should look at the whole portfolio, not one fund.

Matched by holdings overlap from the latest N-PORT reports.