Not exact matches
Some
fund managers will try to
hedge the
currency risk, says HighView's Hallett, but it is a complicated process, and every manager
takes a different approach.
Take a look at the disconnect between the strength of the U.S. dollar v. the Japanese yen and flows into
currency hedged funds since April 2014.
If the answer is yes, then using traditional fully
hedged exchange traded
funds (ETFs) may be the right tool for targeting specific short - term opportunities or seeking to
take currency entirely out of the equation.
The
funds seek to
hedge against the negative impact of
currency risk by
taking short positions in
currency forward contracts.
Do the published managment fees include the cost of
currency hedging for the US and International
funds, or is that a separate cost
taken from the ETF's assets?
Take a look at the disconnect between the strength of the U.S. dollar v. the Japanese yen and flows into
currency hedged funds since April 2014.
If the answer is yes, then using traditional fully
hedged exchange traded
funds (ETFs) may be the right tool for targeting specific short - term opportunities or seeking to
take currency entirely out of the equation.
Any time a rising Canadian dollar
takes a bite out of foreign stock returns investors can feel tempted to use ETFs and index
funds that employ
currency hedging, a strategy designed to protect you from the effects of a decline in the U.S. dollar and other foreign
currencies.
I use
currency neutral
funds in my portfolio and view the higher MER from holding a
currency hedged fund as
taking out a little insurance against a drop in the US dollar.
But if you're a non-U.S. investor, buying
funds that
hedge currency exposure strikes me as the lesser of two evils: It's better to own a global stock portfolio that
hedges currencies than
take the risk of keeping much or all of your money in domestic stocks.
Digital
currency hedge fund manager Jacob Eliosoff
took a different tack, asserting that Zcash may be slightly overhyped.
One issue is the practice by the
hedge funds to
take investments from fiat
currencies with the purpose of investing in cryptocurrencies like Bitcoin and Ethereum to support the launching of new virtual
currencies.
One of the most notable issues, he said, is how such
hedge funds typically
take investments in fiat
currencies, only to have to then invest bitcoin or ether in a new cryptocurrency launch.