Hi Walter, I'm finding the hedged ETFs vastly underperform the unhedged ETF even after accounting for currency movements. Returns below from ishares & vanguard websites for 5 yr period ending 31 Jul 24 IHVV 5-yr cumulative return: 75.38% IVV.ASX 5-yr cumulative return: 109.09% VOO 5-yr cumulative return: 100.7% (US domiciled, so assumes exchange rate fixed) The AUD only depreciated 5% against USD, between 31 Jul 2019 and 31 Jul 2024. Do you know why the hedged ETF underperformed so badly? Fees don't explain the big difference. I initially expected IHVV would be close to VOO as the currency factor has been removed.
Hi Walter, just wondering why you think the US dollar will lose value against the euro in the long term? In 2008 the EURUSD was trading in the 1.55 range. Now it is 0.98 or in other words, the dollar has gained about 50% in value on the euro over 14 years. Is it not better to have your investments in dollars rather than in euros?
Very hard to predict at this stage just wanted to highlight how to hedge if someone wanted to It looks like the EU is limited in how much it can increase interest rates and the US is still ploughing ahead increasing rates so probably more dollar appreciation in the short term But I do think there will be some bit of a pull back over the medium term at least. But long term its very hard to tell what could happen for me
For long-term investments over like 40 years, will hedging my s&p500 etf, just to predict the depreciation of the dollar to sterling within the coming months, make much of a difference?
Over the very long term you shouldn't need to hedge unless you think that there is a chance the dollar could massively depreciate in value over time again the Euro
@@walterdunphy294 Unrelated question, I want to buy ETF now, but have been seeing reddit posts saying it will bottom out soon. When do you think will be the best time to buy?
Great video. Would VUAA not also be a euro hedged S&P 500 ETF
Thank you, VUSA is unhedged but its price its quoted in GBP
iShares S&P 500 GBP Hedged UCITS ETF (Acc) what is your thoughts about ?? please would you go for this one now rather then vusa ?
Hi was wondering if you could do a video on how to file taxes on eu domiciled etfs and when to pay them
THANKS for watching
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Hi Walter,
I'm finding the hedged ETFs vastly underperform the unhedged ETF even after accounting for currency movements. Returns below from ishares & vanguard websites
for 5 yr period ending 31 Jul 24
IHVV 5-yr cumulative return: 75.38%
IVV.ASX 5-yr cumulative return: 109.09%
VOO 5-yr cumulative return: 100.7% (US domiciled, so assumes exchange rate fixed)
The AUD only depreciated 5% against USD, between 31 Jul 2019 and 31 Jul 2024.
Do you know why the hedged ETF underperformed so badly? Fees don't explain the big difference. I initially expected IHVV would be close to VOO as the currency factor has been removed.
Hi Walter, just wondering why you think the US dollar will lose value against the euro in the long term? In 2008 the EURUSD was trading in the 1.55 range. Now it is 0.98 or in other words, the dollar has gained about 50% in value on the euro over 14 years. Is it not better to have your investments in dollars rather than in euros?
Very hard to predict at this stage just wanted to highlight how to hedge if someone wanted to
It looks like the EU is limited in how much it can increase interest rates and the US is still ploughing ahead increasing rates so probably more dollar appreciation in the short term
But I do think there will be some bit of a pull back over the medium term at least. But long term its very hard to tell what could happen for me
have you any videos on teaching trading?
Hey Sean not yet but thinking of starting series on it soon
For long-term investments over like 40 years, will hedging my s&p500 etf, just to predict the depreciation of the dollar to sterling within the coming months, make much of a difference?
Over the very long term you shouldn't need to hedge unless you think that there is a chance the dollar could massively depreciate in value over time again the Euro
@@walterdunphy294 Brilliant. Thanks for the quick reply :)
@@walterdunphy294 Unrelated question, I want to buy ETF now, but have been seeing reddit posts saying it will bottom out soon. When do you think will be the best time to buy?