How to decide whether it is worth it to hedge currency exposure when investing outside of your home country.
Topics covered include:
- How currency exchange rates impact investment returns
- What factors impact currency exchange rates
- What are carry trades and how do they influence exchange rates
- How currency forward contracts work
- How ETFs and funds hedge currency exposure
- What to consider when deciding whether to hedge foreign currency exposure
Thanks to Egnyte) and Quartr) for sponsoring the episode.
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Show Notes
Rising U.S. yields push yen to lowest in nearly 3 years by Saikat Chatterjee—Reuters)
Cutting Volatility in Foreign Stocks While Remaining 100% Invested: Hedge the Currency? by Jeff Weniger and Jeremy Schwartz—WisdomTree)
Carry Trade Comes Surging Back With Biggest Gains Since 2016 by Robert Fullem and Brody Ford—Bloomberg)
Related Episodes
209: Why Bother Investing Internationally?)
283: Why You Should Care About Carry Trades)
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