ETF currency hedging

In an increasingly interconnected financial world, investors routinely allocate capital across borders, seeking diversification and growth opportunities. However, doing so exposes portfolios to currency risk. Fluctuations in exchange rates can either erode, or amplify returns.

Currency hedging has therefore become an essential tool for mitigating this risk. By using financial instruments to lock in exchange rates, currency hedging can minimize the impact of currency movements and better align portfolio performance with the underlying exposure.

Cost effective
We offer low TER and tight bid-ask spreads, minimizing the cost of hedging.
Breadth
Broad shelf across asset classes and a variety of currencies with more than a decade of experience in currency hedged ETFs.
Flexible
The share class structure allows clients to switch between unhedged and hedged share classes, and between different hedging currencies, at minimal cost.

We have offered currency hedged ETFs since 2013. Our range includes share classes hedged to USD, EUR, CHF, GBP, AUD and JPY and we are currently the second largest provider of currency hedged ETFs in terms of AuM.¹

¹ Source: ETFBook.com. Data from 28 November 2025.

Please view risks and opportunities.

In our latest article, ‘Understanding currency hedging: Why it matters, how it works and real-world examples’, we explore:

How currency risk can amplify or erode returns
When hedging can help reduce volatility, particularly in fixed income
The role of carry, implementation costs and hedge ratios
Why we implement hedging via a share class structure, and what that means for investors

Read the full article here

Risks and opportunities

Risks

Each UBS Exchange Traded Fund / Commodity invests in different type of assets and may be subject to high fluctuations in value.
Investors therefore require an investment horizon of at least five years and corresponding risk tolerance and capacity.
All investments are subject to market fluctuations.
Sustainability characteristics and risks are considered as part of the Index selection process.
Every fund has specific risks, which may significantly increase under unusual market conditions.
For products aligned to Article 8 and 9 of Regulation (EU) 2019/2088, sustainability characteristics and risks are considered as part of the ndex selection process.
Changes in currency exchange rates may have an impact on fund value.
The fund's assets are passively managed. As a result, the net asset value of the fund is directly dependent on the performance of the underlying index. Losses that could be avoided via active management will not be offset.

Opportunities

The investment objective is to replicate the price and return performance of the sub-fund’s index net of fees.
For physically replicated funds, the fund generally invests in stocks contained in the Index. The relative weightings of the companies correspond to their weightings in the index.
For synthetically replicated funds, the fund replicates synthetically the index performance by investing in a swap.
The stock exchange price may differ from the net asset value.
The fund is passively managed.
The products described herein align to Articles 6, 8 or 9 of Regulation (EU) 2019/2088.
Clients benefit from the flexibility of an exchange traded investment.
Provides access to the performance of the index with a single transaction.
The fund offers a high degree of transparency and cost efficiency.
UCITS compliant funds, except for UBS ETF (CH) funds.

Any decision to invest should take into account all the characteristics or objectives of the promoted fund as described in its prospectus, or similar legal documentation.
For complete information about the fund, including the risks of investing, applicable fees (e.g. entry or exit fees) and other important information, investors prior to investing should read the Key Investor Information Document (KIID), full prospectus, the complete risk information and any applicable local offering documents. Please refer to your adviser for more information.