International Bonds - to hedge or not to hedge

I’m thinking of a classic 60-40 portfolio. Stocks being total intl. stock market (e.g. VT), and bonds being total intl. bond market.

Now, for intl. bonds, would it make sense to hold one part in a CHF-hedged version, the other part in an unhedged version? I’m seeking for portfolio diversification rather than strict CHF-hedging, because I’m not going to sell my assets anytime soon.

Strangely, I found unhedged intl. bond funds UCITS, but not US.

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Did you read the classic vanguard intro paper in currency hedging, it’s a good starter.


Not yet, going to have a look at it, thanks!

What’s your opinion?

Given the goal of bond in a classic portfolio, I think not hedging would be counter to that (it would get FX volatility).

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I get that. I’ve been thinking a lot about bonds not actually being the “safe” part of my portfolio. So safety might come more from diversification within asset classes. I thought currency diversification might be that.

Kind of applying a “risk parity” approach.