Author Topic: Hedged or Unhedged?  (Read 893 times)

Alchemisst

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Hedged or Unhedged?
« on: May 16, 2020, 04:31:53 AM »
Just weighing up whether to have hedged, unhedged, or a combination portfolio. I would rather have an all USD portfolio so you're not tied to the local currency however with the AUD at such low rates its probably not a good time, hedged hasother problems such as higher expense ratios and does not include emerging markets, including China even though by market cap I think it would be one of the biggest? Thoughts?

deborah

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Re: Hedged or Unhedged?
« Reply #1 on: May 16, 2020, 05:02:56 AM »
Why would you want an all USD portfolio?

mrmoonymartian

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Re: Hedged or Unhedged?
« Reply #2 on: May 16, 2020, 10:31:54 PM »
How soon do you need to access these funds? If long term (eg. super that you can't access for decades), then hedging shouldn't be needed. If you need it back within a year or two, then you shouldn't put it into stocks at all. If you're in or nearing FIRE and this is not locked up in super, then I can see an argument for some hedging if you don't have much by way of non-stock assets in your accessible accounts. Some people recommend 50/50 hedged/unhedged as a one size fits most solution.