Sentences with phrase «add currency diversification»

Four: Unhedged international funds add currency diversification.

In fact, there's evidence that adding currency diversification actually lowers the volatility of a portfolio — at least for Canadian investors.

Not exact matches

Many of us buy bonds as a potential source of portfolio diversification — e.g., to offset dramatic price swings from equity markets — and hesitate to add foreign currency risk.

To add another layer of diversification, the Complete Couch Potato avoids currency hedging for its foreign holdings.

More importantly, investing into Chinese bonds adds diversification benefits to a portfolio through the exposure to local rate, credit and currency.

Going further, the Credit Suisse report points out that if you add international stocks to your portfolio, you are also getting currency diversification.

I would like to add more U.S stocks for diversification, but the currency exchange rate is way expensive now.

I personally prefer using unhedged positions because (a) It is cheaper (b) In the long run, currency effects will average out (c) The value of hedging is questionable when a basket of currencies are involved and (d) While currencies on their own have zero expected return over cash, adding them to a portfolio reduces volatility and offers diversification benefits.

>>» While currencies on their own have zero expected return over cash, adding them to a portfolio reduces volatility and offers diversification benefits.»

The currency implications of global diversification adds another level of complication in everything and of course results in more fees to be earned by the «industry»... In my humble opinion.