The Morningstar Dictionary: Currency hedging

Eliminating currency effects from returns exposes you to the pure performance of your fund's holdings.

Christian Charest 14 June, 2017 | 5:00PM

 

 

When a fund invests in stocks or bonds issued outside of Canada, it exposes you not only to the ups and downs in the prices of these securities, but also to the fluctuations of the currencies in which they're issued versus the Canadian dollar.

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Christian Charest

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