Best ETF hedged in ibkr

First of all , it’s good to do research and not just invest in the ETF because it’s cheaper to buy. So I think you are doing good to ask :slight_smile:

IWDC is hedged for currency. There are some posts on forum about this topic. One of them is Here

Normally when you invest internationally, you carry two risks

  1. Risk of investment in the underlying asset. Let’s say Apple stock. Stock going up means you will be rewarded. And you will lose money if stock goes down.
  2. Risk of currency devaluation. In our example it would be CHF / USD.

Hedged ETFs try to reduce #2 by constantly hedging the currency exposure.

However be aware of some things

  • currency hedged ETFs have higher TER vs standard. IWDC (TER 0.55%) is currency hedged and SWDA (TER 0.20%) is not. They are both from ishares for MSCI World exposure.
  • Hedging involves costs
  • based on historical research, there is no conclusive evidence if hedging for currency for Equity exposure works in advantage or not.Read this

By the way, if your objective is to diversify broker and fund, you can also think of buying VWRL on YUH and buying other ETF on IBKR. IBKR has more choice. You can buy ACWI, IWDC, and many more.

Last point -: be aware that MSCI world ETF doesn’t include exposure to emerging markets. MSCI ACWI ETFs have similar exposure like VWRL. Read this Post

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