Sentences with phrase «term drag on returns»

Investors seem to be falling out of love with currency hedging, which causes a long - term drag on returns for Canadians who invest in US equities, and ETF providers are responding.

I have no view on the direction of currency movements, but I do prefer unhedged equity ETFs, because currency diversification can lower the volatility of a portfolio, and the cost of hedging is a long - term drag on returns.

Not exact matches

However, all investors do have control over two huge factors that can put a serious drag on long - term returns: investment costs and taxes.

Cash is a drag on long - term returns, but if you're incapable of being fully invested in a balanced portfolio, then the drag from cash is nothing compared to the drag on selling into a decline.

ETF investors understand the benefits of keeping management fees low, but fees aren't the only thing causing a drag on your long - term returns.

Hedging worked well in the mid-2000s and other periods when the Canadian dollar rose dramatically, but over the long term it causes a drag on equity returns and may even increase a portfolio's volatility.

That was a lucky accident: over the long term one should expect currency hedging to cause a drag on returns because of its significant cost.

My point is that for a long term investor, bonds are nothing more than a drag on returns.

Given your long time horizon, and your ambitious goals, bonds are just going to be a drag on your long term returns.