WisdomTree launched a new exchange-traded fund on the New York Stock Exchange on Thursday, Dec. 31, debuting the WisdomTree International Hedged Equity ETF (NYSEArca: HEDJ).

The ETF is designed to capture the performance of a broad basket of dividend-paying companies in developed markets, while hedging out the impact of currency movements. Typically, international investments benefit from a falling dollar and suffer when the dollar is on the rise; HEDJ will aim to eliminate dollar concerns and focus solely on the returns generated by the local stock markets.

The fund is designed as an ETF of ETFs. At inception, it was invested in the WisdomTree Europe Total Dividend Fund (NYSEArca: DEB), Japan Total Dividend Fund (NYSEArca: DXJ) and Pacific ex-Japan Total Dividend Fund (NYSEArca: DND). It pairs those investments with forward currency contracts to offset the relevant currency risk.

The fund will charge an expense ratio of 0.58 percent of its fees. The charge reflects both the management fee for the ETF and the underlying fund fees.

HEDJ could be attractive if the widespread dollar carry trade unwinds and the dollar performs strongly in 2010.

The prospectus is available here.

HEDJ is the 139^th ETF to launch in 2009. That number is down from the 220 launched in 2008 and the 292 launched in 2007. Fifty-three ETFs were liquidated in 2009, bringing the total fund growth in the industry to 86.