Single currency portfolios seek to profit by investing in a single currency through the use of short - term money market instruments, cash deposits, and derivatives, such as forward currency contracts, index swaps, and options. (us.etrade.com)
The S&P U.S. Treasury Bond 7 - 10 Year Index (TTM JPY) and the S&P U.S. Treasury Bond 7 - 10 Year Index (TTM JPY Hedged) both track the same bonds with returns represented in Japanese yen, while the latter is hedged in an effort to eliminate currency exposure through a one - month forward currency contract. (indexologyblog.com)
USDU uses derivatives (enters into forward currency contracts with counterparties), so deviations from spot exchange rates aren't out of the question. (etf.com)