Sentences with phrase «currency exposure»

We see foreign currency exposure as a long - term plus — a valuable form of diversification.

In the absence of many Canadian ETFs offering direct currency exposure by holding foreign stocks how would you best advise a smaller Canadian investor to avoid the currency conversion difficulties.

Although international currency exposure provides some diversity to a portfolio you will ultimately be retiring in the dollars of your country.

In principle, it is prudent to diversify currency exposure away from such a dominant but uncertain influence.

The presidential election has been a sharp reminder for many investors of why currency exposure can be a blessing or a curse.

Over such a long term, I am willing to risk currency exposure.

Other studies also suggest too much foreign currency exposure creates more volatility with no increase in expected returns — which is, of course, a lousy combination.

It's expensive, not very precise, and there is good evidence that currency exposure actually lowers risk for Canadian investors.

Unless foreign currency positions constitute more than roughly one - quarter of portfolio assets, currency exposure serves to reduce the overall portfolio risk.

A portfolio's reference currency is the starting point for understanding how foreign currency exposure affects volatility.

Taking on any foreign currency exposure certainly adds volatility.

Instead, focus on / track the underlying currency exposure of each portfolio company / fund.

Conversely, I'd like far smaller developed market currency exposure.

This offers Australian investors potential diversification benefits through foreign currency exposure.

We can assist you with both spot and forward contract requirements to hedge against currency exposure in most major currencies, at competitive exchange rates.

This isn't always the case, as we find that the impact of foreign currency exposure on risk hinges on the investor's home currency.

@ anon: CC has a post covering this topic - April 17th 2007 - one of his comments «My personal preference is to invest directly in US - listed ETFs without hedging currency exposure because in my opinion, hedging is simply chasing performance after the Canadian dollar has run up significantly.

Can I ask, would you be concerned about currency exposure over the long run (e.g. risk of a collapse in the US dollar, which would drag on VTI and VEA).

In essence, this is the same decision we are trying to make when deciding whether or not to hedge away our U.S. currency exposure with the use of currency - hedged ETFs.

As you age, you should be slowly moving into safer less volatile investments such as Canadian dollar denominated bonds anyway, so this issue of currency exposure as you age may just naturally work itself out.

The U.S. dollar currency exposure is hedged back to Canadian dollars.

Commercial hedgers, however, who cover currency exposure as part of their risk management strategy will avoid the present wild ride.

The Portfolio will also implement a currency hedging strategy that will attempt to protect the Portfolio from currency exposure to non-U.S. dollar currencies in respect of units it owns in Underlying Funds.

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.

Duration under 2 years; Canadian bonds may be better if you wish to limit your US currency exposure.

This ETF will seek to hedge foreign currency exposure back to the Canadian dollar.

Currency Volatility The next question for most investors is: What about the increased volatility associated with local currency exposure, particularly in the case of fragile emerging market currencies?

But many investors are surprised to learn that Gerry has the exact same currency exposure as Sharon, even though his ETF is bought and sold in USD.

In its 2013 annual report, the Investment Board explained «we see no compelling reason to hedge equity - related currency exposure.»

Sale at a market price of # 0.7700, the GBP value of the position, also referred to as quote or counter currency exposure, is 50,000 x 0.7700 = # 38,500

These assets are separately compared against the S&P U.S. Treasury Bond 7 - 10 Year Index (TTM JPY), which is calculated in Japanese yen, and the S&P U.S. Treasury Bond 7 - 10 Year Index (TTM JPY Hedged), which tracks the same bonds with returns represented in Japanese yen but is hedged in an effort to eliminate currency exposure through a one - month forward currency contract.

Mining companies in particular appear to have increased their hedging significantly, with the proportion of their net currency exposure hedged increasing to 35 per cent over the March quarter, from 20 per cent late last year.

This trust invests very widely around the world, and its managers actively monitor currency exposure as an added benefit (or not, as it may turn out) for its shareholders.

Driving hard into value added ingredients has paid off for Irish food group Kerry as the company faces off tougher currency exposure in 2003 to see a steady rise in sales and operating profit.

Swensen also discusses currency exposure that stems from foreign investments:

While switching to currency hedged ETFs might appear to be removing currency exposure, it's actually concentrating that risk.

I noticed on this site that Canadian Capitalist has suggested that long term Canadian investors would be better off not hedging their USD currency exposure.

Toggling currency exposure to improve performance is tricky.

We also notice that currency exposure contributes to only a modest portion of unhedged equity risk, suggesting it shouldn't be a principal concern when investing globally.

In our view, Canadian investors should embrace currency exposure in equities, as global equity returns have tended to be less volatile when measured in Canadian dollars.

Bottom line: We believe it makes sense for Canadian dollar based investors to retain currency exposure in non-domestic developed market and emerging market equity holdings.

Trying to make currency plays is foolish at the best of times, but it's especially unwise if you don't fully understand how currency exposure works.

Hedging out currency exposure entirely would remove the upside potential of currency appreciation from the equation.

Ultimately, to understand the personal currency exposure of your own investements, you have to not only understand which countries the stocks in the fund, or represented by the ETF are located in; you also have understand the currency of the revenue and expenses of each of those companies, and finally you also have to understand any hedging strateiges each of those companies are employing.

In other words, Thomas if you are looking to currency exposure internationally, feel free to buy EFA without worrying what the USD does — it will have no bearing on your investment.

This (and all other hedging vehicles) never actually neutralize currency exposure completely.

It's important for investors to consider their appetite for currency exposure prior to investing in an ETF with a foreign investment mandate, rather than after they've owned it and have found themselves wondering why their experience is different than what they had expected (given the performance of the market).

This difference in currency exposure explains why XIN outperformed the TD International Index Fund by over 2.5 % during the last 12 months.