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Follower ○○

Currency Hedged vs unhedged ETF advice

I am a US$ base investor.  I am long some GBP cash.  I don't want convert GBP to US$ at this level. 

I would like to invest in a GBP-denominated S&P 500 ETF.  I have the choice of a currency hedged or unhedged version.  Ultimately, I would like to convert the GBP back to USD when sterling recovers.  I am making the assumption S&P rises and sterling recovers over the next 3 years.

The two products I am looking at are IGUS and CSPX.  Knowing I ultimately want to bring the money back to US$, would I be better served with the hedged or unhedged product?




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2 Replies
Participant ○

Re: Currency Hedged vs unhedged ETF advice

If your thesis that GBP/USD will be higher three years from now, seems like you should be in hedged and not in un-hedged.  


Valued Contributor

Re: Currency Hedged vs unhedged ETF advice

Playing currency is a tough game that even currency specialists can be wrong.

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