Covered interest parity lost: understanding the cross-currency basis
Covered interest parity verges on a physical law in international finance. And yet it has been systematically violated since the...
Investing in Currencies
Should You Invest in a Currency-Hedged International-Equity ETF?
In the United States, most international-equity funds do not hedge their foreign-currency exposure. This long exposure to foreign currencies contributed...
Ignore currency fluctuations at your financial peril
Consider the example of McDonald’s, which generates 65% of its income outside the US. Without protections against currency fluctuations, if...
Currency ETFs – Fidelity
Concentration risk — The degree of diversification varies significantly from one ETP to another. Certain ETPs target a small universe...
Gold mitigates foreign-exchange risk when investing in emerging markets
Investors in emerging market assets can use gold to reduce the risks associated with exchange-rate volatility and benefit from significant...
