Posts for tag #Currency

Hedging: yes or no?

July 29, 2026

Hedging against USD swings isn't free: the real cost is the interest rate differential between the US and the Eurozone - currently ~1.32% a year. These cost are not visible in the fund's TER. On a 4% USD yield, hedging eats a third of it. My rule: EUR exposure for most bonds, part of equities, rest unhedged.