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S and P and NASDAQ index
theGrinch
Posts: 3,133 Forumite
Is there a way to invest in these index from the UK without USD/GBP currency exposure muddying returns but within an ISA?
"enough is a feast"...old Buddist proverb
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Comments
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yes there is. Use a hedged version of the fund. There are not many in the UT/OEIC world. One comes to mind. Probably more in the ETF world.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.1
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As mentioned by Dunstonsh the Hedge Version. But the fee is normally higher
Take iShares S&P 500 (IUSA) as an example. This is the US dollar share class and has anOCF of 0.07% a year. The currency hedged ETF, iShares S&P 500 GBP Hedged (IGUS), has an OCF of 0.2% a year.
Currency hedged ETFs and their non-hedged counterparts will noramlly use the same asset allocation, but the difference is that currency-hedged ETFs typically use forward exchange contracts to protect against exchange rate fluctuations
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