Your global shares could be soaring, but currency movements might be wiping out your gains. Betashares Senior Investment Strategist Cam Gleeson joins Bryce and Ren to explain how currency hedging works, when hedged and unhedged ETFs outperform, and whether a 50/50 split could be the simplest way to manage currency risk.
In this episode:
00:00 Currency Hedging Explained
04:09 Hedged vs Unhedged ETFs
07:19 Currency Risks and Returns
11:38 Blending Hedged and Unhedged
14:11 Hedging Different Assets
17:00 How Time Horizons Matter
20:11 Simplifying Your Strategy
22:04 Where Is the Aussie Dollar Headed
26:50 Long Term ETF Performance
29:16 Final Thoughts
ETFs Mentioned:
Betashares Japan ETF – Currency Hedged (ASX: HJPN), Betashares Global Shares ETF (ASX: BGBL), Betashares Global Shares Currency Hedged ETF (ASX: HGBL), Betashares Geared US Equity Currency Hedged Complex ETF (ASX: GGUS), Betashares Wealth Builder Diversified All Growth Geared ETF (ASX: GHHF), Betashares Diversified High Growth ETF (ASX: DVHG), Betashares Diversified Growth ETF (ASX: DVGR), Betashares Diversified Balanced ETF (ASX: DVBA)
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Betashares Capital Ltd (ABN 78 139 566 868 AFSL 341181) is the issuer of the Betashares Funds, as well as Betashares Invest, the IDPS-like scheme available via Betashares Direct. Read the relevant Product Disclosure Statement and Target Market Determination, available at www.betashares.com.au, before making an investment decision. This information is general in nature and doesn’t take into account any person’s financial objectives, situation or needs. You should consider its appropriateness taking into account such factors and seek professional financial advice. Customers are not permitted to participate in more than one Betashares offer, promotion or incentive at the same time. If you are currently participating in, or have accepted, any other Betashares offer, you will not be eligible for this offer unless expressly stated otherwise. The $25 will expire in 60 days from receipt if not used to make an investment.
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