EconCERF
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Intermediate · I2

Currency: Hedged or Not

When you buy the world, you also buy its currencies. What that second bet does to your returns, what “CAD-hedged” means, and what EconCERF plans currently do about it.

By the end of this module, you’ll be able to:

  • Explain how a foreign holding is affected by both the investment and exchange rate.
  • Explain why currency swings can overwhelm the stability expected from foreign bonds.
  • Explain what currency hedging reduces without claiming it removes every currency effect.
  • Check a fund’s name and ETF Facts for its hedging policy.
  • State how the mix shown in your plan handles foreign currency exposure.

5 lessons · about 45 minutes

  1. 1The hidden second bet
  2. 2How much currency moves the needle
  3. 3What a hedged ETF does
  4. 4What this platform does with the currency bet
  5. 5Reading the label, then Currency: Hedged or Not in one page + a quick check

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