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 ...

Conventional wisdom says actively managed mutual funds beat the index during bear markets (and are thus better to hold than index funds). Not so says a recent study from Standard & Poor’s Index Services.