My home currency is EUR but most of my ETF investments are in USD (IWDA, ZPRX, ZPRV). Would you hedge the USD/EUR exposure?
So far it’s been working in my favor as we’re close to parity but the world seems to be in some structural shift and I have some doubts about the exchange rate developments. We’re looking here at a 20-30 year investment horizon.
personally i wouldnt. i think ur good. ur in a country where their currency is roughly the same. its equity investments, if dollar valuation drops then performance will do good. in long run it fixes itself.
Maybe for fixed income since its a fixed rate. i remember there was an issue with emerging market that had us denominated debts where they had to pay in usd. their crap currency did poorly and so they had to pay a much higher rate from their local currency than expected.