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.
For more information on this episode click here.
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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