Podcasts & Videos
Mitigate Currency Exposure in Your International Investments
Recorded June 19, 2015.
The DXUS and HDLS Funds are new and have limited operating history. Diversification does not eliminate the risk of experiencing investment losses.
ETFs: exchange-traded funds
Hedge: Making an investment to reduce the risk of adverse price movements in an asset. Normally, a hedge consists of taking an offsetting position in a related security, such as a futures contract.
MSCI EAFE Index: A market cap-weighted index composed of companies representative of the developed market structure of 21 developed countries in Europe, Australasia and Japan.
Volatility: A measure of the dispersion of actual returns around a particular average level.
Interest rates: The rate at which interest is paid by a borrower for the use of money
Forward contracts: Agreements to buy or sell a specific currency at a future date at an agreed upon rate.
Short-term interest rates: The rate of interest on a debt instrument maturing in two years or less.
Short: The sale of a borrowed security, commodity or currency with the expectation that the asset will fall in value, the opposite of long (or long position)
Prime Minister Abe: Japanese prime minister Shinzo Abe was elected into office on December 16, 2012, and has enacted a series of policies aimed at stimulating Japan’s economic growth.
Hedging can help returns when a foreign currency depreciates against the U.S. dollar, but can hurt when the foreign currency appreciates against the U.S. dollar.