You gotta be careful what you read, especially if you are a do-it-yourself investor making portfolio decisions based on what you read. Not everything in a newsletter or on a website will necessarily be true or easily interpreted.
The recent decline in the U.S. dollar again puts the spotlight on whether or not investors need to hedge currency exposure when investing in foreign markets. Are the costs worth bearing? I’d like to pass on some additional thoughts to a post I did a little while ago.
Jan
12
Most investors understand that currency-hedged foreign funds will have a higher management expense ratio (MER) due to the hedging costs. What may escape them, however, is the fact that such currency-hedged funds can also have rather large “tracking errors.” This makes the cost of currency hedging quite high for the ...
To hedge or not to hedge the currency, that is the question. A reader asks if he should be buying the currency-neutral version of mutual funds/exchange-traded funds when diversifying into foreign markets. This question is often heard from readers -- perhaps because many investing books skip over it or leave ...




