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.
Why UBS hedged ETFs
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.
Hear from the experts
Gain practical insights from our analytics, fixed income and portfolio management leaders as they break down how currency swings shape investment outcomes. From volatility control to hedge ratio decisions, this short series shows why 'doing nothing' on FX should still be a conscious decision.
Willem Keogh, Head ETF & Index Fund Investment Analytics, explains how currency cycles can dramatically reshape investor outcomes even when equity exposure stays constant, drawing on real episodes such as USD weakness and yen volatility.
Pius Grueter, Head Indexed Fixed Income, shows how unhedged FX risk can overpower the stability typically expected from high‑quality bonds and even make them behave like equities.
Ben Faulkner, Senior Portfolio Manager – Structured Beta & Indexing, outlines how unhedged FX can dominate portfolio behavior, particularly in fixed income, and offers three practical hedge‑ratio approaches for different investor goals.
