The FX dimension: Evaluating currency hedging for global multi-asset portfolios
30 minute read
Research and commentary

The FX dimension: Evaluating currency hedging for global multi-asset portfolios

How much should investors hedge currency exposure in a global portfolio? Vanguard’s latest research examines the impact of foreign exchange risk on multi-asset portfolios and identifies a practical rule of thumb: hedge bond exposures, while leaving most foreign equities unhedged.

How much should investors hedge currency exposure in a global portfolio? Vanguard’s latest research examines the impact of foreign exchange risk on multi-asset portfolios and identifies a practical rule of thumb: hedge bond exposures, while leaving most foreign equities unhedged. The paper explores the evidence behind this approach and explains how advisers can incorporate currency considerations into portfolio construction decisions.

 

The FX dimension: Evaluating currency hedging for global multi-asset portfolios

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