Introduction
It is my portfolio idea just to borrow from the article Canada retirement guide using three ETF (VFU, VDU, VAB). The blog is related to CAD-Hedged vs Not Hedged.
Case study
CAD-Hedged vs Not Hedged
Our portfolio invests in ETFs that are not CAD-Hedged because their returns are significantly higher and more stable than ETFs that are CAD-Hedged. The table below compares this historical performance on developed market stocks.
FTSE Developed All Cap Index = developed market stocks
FTSE Developed All Cap Index = developed market stocks
Historical Returns
|
1 Year
|
5 Year
|
10 Year
|
FTSE Developed All Cap Index
(not CAD-Hedged) |
–1.5%
|
9.8%
|
10.8%
|
FTSE Developed All Cap Index
(CAD-Hedged) |
–7.9%
|
6.5%
|
10.4%
|
(annualized returns as of December 31, 2018)
Note: All returns are in Canadian dollars.
Sources: FTSE Russell index fact sheets.
I like to learn the concept called CAD-Hedged.
Note: All returns are in Canadian dollars.
Sources: FTSE Russell index fact sheets.
Actionable Items
I like to learn the concept called CAD-Hedged.
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