How to hedge against a loonie in decline

Here is the link.

The hedged iShares S&P 500 Index Fund (XSP) made 3.2 per cent annually for the five years to May 31, while the S&P 500 made 4.1 per cent. XSP's management expense ratio is 0.25 per cent, which means tracking error caused in part by currency hedging played a role in the rest of the shortfall.

Over periods of 10 years or longer, many experts believe hedging is unnecessary because currency ups and downs cancel each other out. It's also thought that hedging isn't needed when investing in a broad index of international countries, where currency risk is limited by diversification.