I earn in CHF, so I'm considering the iShares S&P 500 CHF Hedged ETF as a way of investing in the S&P 500 while also protecting myself against fluctuations in the USD/CHF exchange rate since inflation is higher in the US than it is in Switzerland at the moment.
Details of the ETF are here: https://www.ishares.com/ch/individual/en/products/251406/ishares-sp-500-chf-hedged-ucits-etf I'm just confused about one part of the description here - "hedges USD currency [...] back to CHF".
I understand that they are taking out future contracts every month to hedge against currency fluctuations, but I'm not sure which direction they are being taken out in. Are the futures taken out against CHF or USD?
Since it's denominated in CHF I think the futures are taken out against USD but I want to be sure that I'm understanding this correctly.
If anyone has resources I can use to understand this terminology better in general that would also be great. I've found it difficult to Google the true meaning of that sentence.