The Nikkei 225 USD Hedged Index is one of the indexes which consists of the “Nikkei 225 Currency Hedged Indexes” and the index measures the return of the Nikkei 225 archieved by fully hedging its currency risk for investors outside Japan i.e. non-Yen, USD-based investors. This index represents the mixed positions of the Nikkei 225 investment in other currencies than JPY, and the relevant currency hedged transactions. The Nikkei 225 Total Return USD Hedged Index which is based on the Nikkei 225 Total Return Index is also calculated and published. Both indexes are calculated by using a monthly hedging method.
The Nikkei 225 USD Hedged Index is calculated on the Nikkei Stock Average (Nikkei 225). The Nikkei 225 is comprised of 225 stocks selected from domestic common stocks in the 1st section of the Tokyo Stock Exchange, which is used around the globe as the premier index of Japanese stocks.
Index value on a day is calculated by multiplying the index value on the end of the previous month by (1) the return of the Nikkei 225 from the end of the previous month, (2) the return of the spot currency rate from the end of the previous month, and (3) the currency hedge return from the end of previous month, respectively.
Base date etc
The index started to be published from December 8th 2014. The inception value was 10823.57 points on September 30th, 2004 (this value identical to the Nikkei 225 closing on the day). The index has been calculated and published on the end-of-day basis by 2pm on the next business date.