Currency-Hedged ETF Explained: Hedged vs. Unhedged With Simple Math
Hi, this is Kkoogongnam. A currency-hedged ETF tries to reduce the effect of foreign-exchange moves on an investment’s U.S. dollar return. If a U.S. investor buys foreign stocks, the result normally depends on both the stocks and the foreign currencies. A USD-hedged fund adds contracts—usually currency forwards—to offset much of that currency exposure. Hedging does … Read more