If you believe the British currency is due for a pullback and you like the prospects for British equities, you could consider the recently introduced db X-trackers MSCI United Kingdom Hedged Equity Fund ( DBUK). The dollar volume is a bit too light for my tastes, though I am looking forward to the day when DBUK has more assets under management.

What about the euro? CurrencyShares Euro Trust ( FXE) took a noteworthy hit when the European Central Bank found itself with few alternatives; it lowered its refinancing rate to 0.25% last month. Nevertheless, FXE has been charting a path of higher lows since early July.

That has made the unhedged Vanguard Europe ( VGK) stronger than WisdomTree Hedged Europe Equity ( HEDJ) for the last five months. On the other hand, if the European Central Bank continues making overtures to weaken the eurozone's common currency -- if you see value in European corporations that trade at lower price-to-sales ratios than their U.S. counterparts -- depreciation in FXE could herald outperformance for HEDJ.

At the time of publication the author had no position in any of the stocks mentioned.

Disclosure Statement: ETF Expert is a website that makes the world of ETFs easier to understand. Gary Gordon, Pacific Park Financial and/or its clients may hold positions in ETFs, mutual funds and investment assets mentioned. The commentary does not constitute individualized investment advice. The opinions offered are not personalized recommendations to buy, sell or hold securities. At times, issuers of exchange-traded products compensate Pacific Park Financial or its subsidiaries for advertising at the ETF Expert website. ETF Expert content is created independently of any advertising relationships. You may review additional ETF Expert at the site.

Gary Gordon reads:

Real Clear Markets
Jeff Miller
indexuniverse
Charles Kirk
On Twitter, Gary Gordon follows:

Jonathan Hoenig
Doug Kass
Hard Assets Investor

If you liked this article you might like

Watch Out for a Counter-Trend Rally in the Dollar Index

Want to Know Why Japan Stocks Are Lagging? These Charts Tell the Story

Intermediate Trade: Japanese Yen Trust

Intermediate Trade: Japanese Yen Trust

Foreign Equities Turning Lower Again

Yen: My Favorite Trade Idea for 2Q

Yen: My Favorite Trade Idea for 2Q