Cameron Passmore CIM, FMA, FCSI

Portfolio Manager

Benjamin Felix MBA, CFA, CFP

Associate Portfolio Manager
  • T613.237.5544 x 313
  • 1.800.230.5544
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  • 265 Carling Avenue,
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  • Ottawa, Ontario K1S 2E1

Should You Currency Hedge Your Portfolio?

November 17, 2017 - 0 comments

If you’re worried that currency fluctuations might hurt your returns, then hedging can seem like a pretty good idea. It’s a shame that there is no evidence to back that idea up. Time and again it has been shown that currency hedging does not have a material impact on the long-term risk and return characteristics of an equity portfolio. So – should you hedge? 


Trying to make a decision in the absence of evidence is kind of like betting on a coin flip. You might win, you might lose, but there is no reason to expect one outcome over the other. In today’s Common Sense Investing video, I will survey the research and provide you with some ideas on how to make the currency hedging decision in your portfolio.

 If you’ve been worried about adding a hedge to your portfolio before the dollar rises – don’t be. It’s impossible to consistently hedge at exactly the right time. It is, however, possible to subscribe to Common Sense Investing for a new video every two weeks.

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