Take a view on the US dollar Archives | BetaShares

Why currency hedging matters!

Last year in my article Currency hedging – 3 things to consider I introduced the concept that exposure to foreign currencies can potentially be an added source of unnecessary risk to your global equities investment when looking at certain currency pairs.
Today I’m going to highlight a few specific international regions and global sectors where taking on this additional currency risk has historically been to the detriment of Australian investors due to the correlation of the underlying equities market to its domestic currency or,

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The benefits of currency investing through ETFs

The much hoped-for “green shoots” arising from post-GFC economic stimulus are blossoming in key markets, and present some attractive opportunities for Australian investors.
The US economy, in particular, is expected to continue to improve. According to the latest forecasts from the International Monetary Fund, the US economy will grow by an above-trend 3.6% this year,

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Risk-on/Risk-off investing – using currency to de-risk global exposure

With the Australian dollar seemingly on a downward trend, investor interest in gaining offshore investment exposure is growing. In our recent Portfolio Construction post, we looked at some strategies to implement ‘risk-on/risk-off’ for domestic equities exposures. In this post, we look at how currency can be used to de-risk your international share allocations.

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