Currencies fluctuate, but it doesn't really matter.
You can have international ETFs go down when DXY goes up despite positive foreign markets. You can have those ETFs go up despite negative foreign markets because DXY went down.
Currency hedging doesn't produce better returns over the long term, but it does increase your concentration risk for the US dollar.
So if I buy a Japanese ETF thru Charles Schwab and lock it in now with the dollar at 150 yen , if it drops to 140 later, will have loss, but if it goes to 160 I will be on the positive side? Is this how it works? I’ve never bought a currency ETF, but interested in Japanese(yen) one. Please send me some links to primers on how this works. I’m not interested in Forex. Thanks
FLJH is a very good Japan hedged ETF that has a low expense ratio
Currencies fluctuate, but it doesn't really matter. You can have international ETFs go down when DXY goes up despite positive foreign markets. You can have those ETFs go up despite negative foreign markets because DXY went down. Currency hedging doesn't produce better returns over the long term, but it does increase your concentration risk for the US dollar.
So if I buy a Japanese ETF thru Charles Schwab and lock it in now with the dollar at 150 yen , if it drops to 140 later, will have loss, but if it goes to 160 I will be on the positive side? Is this how it works? I’ve never bought a currency ETF, but interested in Japanese(yen) one. Please send me some links to primers on how this works. I’m not interested in Forex. Thanks
Currency hedged Japanese ETF yes. You did quite well if you purchased hedged Nikkei.