ETF Hedged FX differences

Discussion in 'ETFs' started by seppel05, Apr 28, 2020.

  1. seppel05

    seppel05

    Hi there,

    Can someone please explain to me how to compare FX hedged ETFs across different tranches? For reference, I am looking at the iShares Global Corporate Bond UCITS ETF and its tranches that are hedged against the USD (CRPU), the EUR (CRPH) and GBP (CRHG).

    When I look at the YTD performance in the respective currencies, I get the following:
    - CRPU (in USD): +0.53%
    - CRPH (in EUR): -0.47%
    - CRHG (in GBP): -0.87%

    Should - in theory - the performance not be the same for all 3? What explains the difference? The hedging costs? And if so, do those really make up >1% for a period of 4 months?