Best ETF hedged in ibkr

[Dots92]

Hi,

I’ve read a lot of threads , but still not clear for me what is the best etf in ibkr hedged chf

Do we have somewhere a wiki like
Best etf world in usd : VT why bla bla
Best etf world in chf and why
Best etf world chf hedged and why
Best etf world hedged eur and why

[Helix]

Hedging stocks to currencies doesn’t make much sense:

The trading denomination is irrelevant for all assets (and hedging)

tl;dr: There is no important relationship between an asset (e.g. gold) and its denomination (e.g. CHF). Listen to reason Reason 1: The asset you hold If you buy 1 kg of gold, you hold… 1 kg of gold. It logically has the same value regardless of what currency (CHF, EUR, USD, etc.) you bought it with. Reason 2: Arbitrage Let’s say you could get more value by buying or selling your gold in one currency than another. For example: Asset Denomination Price Gold CHF 10 Gold EUR 20 CHF EU…

[San_Francisco]

@Dots92

what is the best etf in ibkr hedged chf

A bond ETF probably.

[xerox5003]

@Dots92

Best etf world in usd : VT why bla bla

• Probably VT or VWRL.

@Dots92

Best etf world in chf and why

• For me, an ETF in CHF (not hedged) does not make sense since a) you can buy the ETF specifically in CHF but with lower volume and higher spreads at SIX and b) the underlying is in USD/EUR/… anyways.

@Dots92

Best etf world chf hedged and why

• Probably IWDC.
  Edit: Input from @jay : MSCI ACWI SF UCITS ETF (hedged CHF) is a cheaper option. Take into account, that it is Swap-based.

@Dots92

Best etf world chf hedged eur and why

• Not interesting for me, therefore, I leave that open. But I would take an all-world ETF from Vanguard or Blackrock’s iShares.

[jay]

@xerox5003

For me, an ETF in CHF (not hedged) does not make sense since a) you can buy the ETF specifically in CHF but with lower volume and higher spreads at SIX and b) the underlying is in USD/EUR/… anyways.

ETFs traded in CHF do make sense for people who (need to) use a broker with high currency exchange fees such as Swissquote. For IBKR clients, there is almost no benefit.

@xerox5003

Probably IWDC.

IWDC is very expensive (0.55% TER). I’m not interested in CHF-hedged stock ETFs myself but if I was, I would likely choose the UBS MSCI ACWI SF UCITS ETF (hedged to CHF) with a 0.21% TER.

@Dots92

Best etf world chf hedged eur and why

What’s that supposed to be?

[Abs_max]

If you are looking for an all world equity ETF hedged in CHF then most like IWDC is your best bet. It comes at a cost though because it’s TER is higher than SWDA (unhedged version)

IWDC is tracking MSCI World. There is also a very new ETF from UBS IE000N6LBS91(also tracking MSCI world) but it’s very small for now.

I am assuming you are looking for hedged version to have reduced currency exposure and not necessarily higher returns. If objective is to have higher returns then there is no conclusive proof if hedging works or not for Equity in long term investment.

Note -: MSCI World Index tracks developed world. It doesn’t include Emerging markets

[Tony1337]

There is also ACWIS from UBS. Msci acwi hedged to chf, high aum.

[Abs_max]

I think that’s synthetic swap based ETF. Right? Or is it also physical replication ?

[jay]

@xerox5003

MSCI ACWI SF UCITS ETF (hedged CHF) is a cheaper option. Take into account, that it is Swap-based.

Good point mentioning that it’s swap-based. However, I assume the currency hedge anyway has a counter party risk, so maybe for a hedged ETF the difference between physical replication and synthetic is less significant? I’m not sure.