It compares the returns of the unhedged iShares MSCI Japan ETF (EWJ B - 99), the currency - hedged version of the same fund, the iShares Currency Hedged MSCI Japan (HEWJ D - 38) and
the actual currency cross in an ETF wrapper, the CurrencyShares Japanese Yen Trust (FXY B - 99).
The «hardness» of a
currency, they write, «could be defined as the willingness of international agents to hold the
currency, as measured by its
actual use in
cross border financial positions.»