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ETFs Hedged to the pound

Index tracking funds and ETFs
TimR
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ETFs Hedged to the pound

#88788

Postby TimR » October 17th, 2017, 8:50 am

I was wondering if anyone is using Hedged ETFs to mitigate some of their currency exposure.
I know Hedged Etfs are available for 'All World' as well as the individual regions of - USA, Europe and Japan. It depends on where the £ is going to go from here. Obviously the best time to have bought these would have been during the end of last year when the £/$ was around 1.21.

TimR

Windinthefens
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Re: ETFs Hedged to the pound

#88943

Postby Windinthefens » October 17th, 2017, 7:24 pm

With the equity part of my portfolio I would hope over the long term that exchange rates would come out in the wash, so I don't hedge. I also have to remember I have my house, job, tax liabilities, day-to-day spending etc in £s and likely will do long term. What I [i]have [i] changed though is that I previously had the entire "safe" part of my portfolio in gilts, but have moved a fair proportion to a Global Government Bond ETF which is hedged back to Sterling. The ETF (XGSG) has a TER of 0.25%, which isn't as low as the gilt one, but isn't bad I think.
Everything I've seen during the last year politically in the UK makes me think that it's sensible not to put all those eggs in the same basket, whereas I would have previously considered gilts bomb-proof. I still think it's very unlikely there would be a problem, but then I think of Boris Johnson..... ;)


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colin
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Re: ETFs Hedged to the pound

#89167

Postby colin » October 18th, 2017, 7:07 pm

I do use hedged ETFs , but I wish some institution would produce a US Tips or US Govt Bond GBP hedged ETF.


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