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
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ETFs Hedged to the pound
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Re: ETFs Hedged to the pound
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.....
Windy
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.....
Windy
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Re: ETFs Hedged to the pound
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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