Q: I have been doing monthly periodic purchases of VGG since January 2025. I clearly picked wrong (as usual) and should have gone with VHG (hedged version). I continue with monthly periodic purchases (even though my investor fear says not too), but should I switch and start purchasing VGH instead ? Am I cancelling out any future returns by doing so ?
5i Research Answer:
This is essentially a currency call, and as such will either be right or wrong. The C$ has been strong, but not really because of Canadian strength, but rather the 'avoid US' mentality right now. This could change at any time. We think, assuming that an investor has other Canadian dollar investments, it still makes sense to own some unhedged products to allow for some currency diversification.
Authors of this answer, directors, partners and/or officers of 5i Research and/or affiliated companies have a financial or other interest in VGG.