Timeline for Is a currency "hedged" ETF actually a more speculative instrument than an unhedged version?
Current License: CC BY-SA 3.0
15 events
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| Oct 19, 2018 at 15:00 | history | tweeted | twitter.com/StackFinance/status/1053299747803545600 | ||
| Oct 19, 2018 at 12:29 | history | edited | Bob Baerker |
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| Oct 11, 2017 at 5:19 | comment | added | Victor | If you want to know what a chart of an unhedged gold ETF would look like then you can see my first chart in my answer below - Gold: EUR 5 years. | |
| Oct 11, 2017 at 5:16 | comment | added | Victor | @ku9182 - No part of your question asks for "a comparison between the hedged ETF vs. an unhedged ETF". You just make baseless assumptions and then state that you think the hedged ETF should be called currency "speculative" (not hedged) gold ETF, and then you ask if others agree with you. The answer to that is no - we do not agree with you. You are incorrect in your assumptions and your understanding of what a hedge is. | |
| Oct 10, 2017 at 21:16 | comment | added | ku9182 | Instead, what is relevant for this question is a comparison between the hedged ETF vs. an unhedged ETF. If you can find a chart of that, I'd be grateful. | |
| Oct 10, 2017 at 21:13 | comment | added | ku9182 | @Grade 'Eh' Bacon "how could you explain Victor's clear correlation shown below?" Victors "clear correlation" chart depicts the ETF vs. its benchmark index, the Gold Euro-hedged index (as is stated in the chart). It would be a miracle if those two curves were not highly correlated (i.e. something would have to go wrong with the ETF for it not to follow the index it is supposed to track). | |
| Oct 10, 2017 at 20:19 | answer | added | xiaomy | timeline score: 2 | |
| Oct 10, 2017 at 15:03 | answer | added | ssn | timeline score: 0 | |
| Oct 10, 2017 at 13:16 | comment | added | Grade 'Eh' Bacon | This is not really an area of life where it is a good idea to theorize what numbers "should" do. You should test what they actually do. If your argument were correct, then how could you explain Victor's clear correlation shown below? Humility in this area might help you to learn something valuable - you are convincing no one here with hubris alone. | |
| Oct 10, 2017 at 13:15 | comment | added | Grade 'Eh' Bacon | You are making a lot of baseless assumptions in your prediction of how the prices of gold, EUR, and USD correlate. For example, you are assuming that a weakening EUR = a stronger USD = weaker gold. But in this simplified scenario, a "stronger USD" is only stronger relative to the EUR itself, not stronger relative to all currencies/commodities. Just because $1USD buys 10% more EUR tomorrow doesn't mean it will buy 10% more JPY tomorrow (and particularly it doesn't mean that $1USD will buy 10% more gold tomorrow). | |
| Oct 10, 2017 at 5:57 | answer | added | farnsy | timeline score: 3 | |
| Oct 9, 2017 at 11:02 | comment | added | ApplePie | Most likely they are buying a one day currency swap, which they call a hedge. | |
| Oct 7, 2017 at 21:07 | answer | added | Victor | timeline score: 8 | |
| Oct 7, 2017 at 20:14 | review | First posts | |||
| Oct 7, 2017 at 20:28 | |||||
| Oct 7, 2017 at 20:08 | history | asked | ku9182 | CC BY-SA 3.0 |