Hedging overseas FX risk

Discussion in 'ETFs' started by vaffab, Jan 21, 2017.

  1. xandman

    xandman

    Jack makes a very important update/correction. My apologies. Please verify your brokers accounting.
     
    Last edited: Jan 23, 2017
    #11     Jan 23, 2017
    JackRab likes this.
  2. xandman

    xandman

    Agree with unhedged FX exposure for aggressive foreign investments. I think it is best used for foreign fixed income investments than are meant to fund local currency denominated liabilities. Equity returns are simply unpredictable.

    Though, I would be more inclined to recommend he dump the foreign denominated gold investments completely and invest locally unless he doing some kind of arbitrage. He can simply trade currencies to acquire a desired currency exposure.
     
    #12     Jan 23, 2017
  3. Metamega

    Metamega

    Just curious however why you bought US listed etfs. Surely AUS has some etfs that track similar products. The volume might be crap for day trading but for buy/hold you should get a decent price.
     
    #13     Jan 23, 2017
  4. vaffab

    vaffab

    No not really. There are plenty of domestic funds and of course S&P 500 trackers but not too much of specific foreign markets.
     
    #14     Jan 24, 2017
  5. vaffab

    vaffab

    Thanks JackRab but I don't think mine account if FX hedged. My paper loss around $80 but paper FX loss two times that. Can't be hedged.
     
    #15     Jan 24, 2017
  6. vaffab

    vaffab

    I've sold my GLD exposure and bought some local gold ETF. Cheers.
     
    #16     Jan 24, 2017