Posts for tag #Hedging
visitor
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.
visitor
Why I underweight the US
July 6, 2026
My target regional allocation is 45% US, 30% Europe, 25% Other. The 45% US is a big and deliberate cut versus the ~71% US weight in MSCI World and ~63% in MSCI ACWI. My reasons: concentration risk, a currency problem, and a shifting geopolitical landscape - the hardest of the three to quantify, but maybe the most important.