MARKET INSIGHTS & ETF SOLUTIONS
10/05/2021
Cutting Volatility in Foreign Stocks
After looking at hundreds of asset allocations across this industry over the years, we have seen many investors own foreign stocks with no hedge. They have plenty of rationales, but the main ones are a desire to go along with the status quo, a discomfort with hedging or belief in currencies’ diversifying effect.
We strongly feel the status quo argument –that maintaining currency exposure because it is the common thing to do – is hardly a satisfactory explanation for following that path.