Gaining exposure to USD inside investment ISA

trenchwars

Hi is there a way to invest in USD inside an investment ISA as a hedge against a falling pound? My ISA provider will not allow me to direcly hold USD in my ISA account (I assume its against the rules). What I am looking for is an ETF or equivalent trust that basically holds the equivalent of USD cash. Would something like this be suitable:

https://www.ii.co.uk/etfs/lyxor-fed-funds-us-dollar-cash-etf-c-usd-gbp/LSE:FEDG

masonic

ISAs cannot hold foreign currency, so it is against the rules. That fund might be suitable, but you could also consider US Treasuries or even a global bond index (unhedged). If you hold equities, then these will tend to rise in GBP as the pound tanks, so there are a multitude of options, pretty much anything other than GBP cash and UK bonds.

biscan25

A short dated us treasury fund is probably the way to go. 

Maybe something like this https://www.hl.co.uk/funds/fund-discounts,-prices--and--factsheets/search-results/p/pictet-sovereign-short-term-money-market-i-usd-accumulation/key-features

pjread

I might not 100% get what you're trying to achieve here, but either US bonds or US equities give high USD exposure, as do a lot of global equities.

Not entirely sure why you'd want to sit on a pile of literal cash inside an ISA in any currency (though as noted, you can only directly hold GBP)

trenchwars

I have a large pile of uninvested cash in my ISA which I don't want to dump into equities all in one go, but neither do I want to hold it all in GBP given we could be on the verge of a currency crisis.

Albermarle

trenchwars said:

I have a large pile of uninvested cash in my ISA which I don't want to dump into equities all in one go, but neither do I want to hold it all in GBP given we could be on the verge of a currency crisis.

So effectively your want to speculate in foreign currency movements with the cash, which is normally not advisable/risky.
If the foreign exchange markets thought that Sterling was about to plummet against the Dollar, then it would have already done so. 
As mentioned before global equities are mainly dollar based, so maybe put half of it in a global tracker.