Opportunistically placing or
removing currency hedges runs counter to our philosophy of not trying to time the market.
Not exact matches
While switching to
currency hedged ETFs might appear to be
removing currency exposure, it's actually concentrating that risk.
Beyond this, you must also consider their sector representation (some of the Canadian equity ETFs, for instance, have large financial sector exposure) as well as whether a CAD
currency hedge (aimed at
removing their foreign
currency risk) is something for you or not.
E.g. foreign country inflation is
removed from foreign stock index returns in order to be able to claim that
currency exchange rates supposedly have no impact on returns (see Hedge Foreign Cu
currency exchange rates supposedly have no impact on returns (see
Hedge Foreign
CurrencyCurrency).
That's the reasoning behind
currency hedging: it's designed to eliminate that second risk by
removing the effect of fluctuating exchange rates.
By
hedging, you are
removing the impact of
currency swings.
Hedging out
currency exposure entirely would
remove the upside potential of
currency appreciation from the equation.
We've largely
removed this risk through
currency hedging.
Currency hedging at least a portion of your equity exposure has the benefit of keeping some of your returns in the same currency as your consumption, but too much hedging removes the diversification benefit of currency e
Currency hedging at least a portion of your equity exposure has the benefit of keeping some of your returns in the same
currency as your consumption, but too much hedging removes the diversification benefit of currency e
currency as your consumption, but too much
hedging removes the diversification benefit of
currency e
currency exposure.
By poaching the best qualities of its competitors, ETH might
remove the need for investors to
hedge among multiple
currencies.