Investment Q&A

Q: Hi Peter,
One of the key goal of the current US monetary policies is trying to lower the value of US$. For the past decade, Canadian investors do not have to think of hedging. However, for the next decade, there is a good chance that exchange rate is going to move in the opposite direction. Over half of my portfolio is in the direct holding of US stocks, so it is unhedged. I do not want to sell my US holdings and buy CDRs, due to the tax consequence as well as not all US stocks have CDR equivalent. So for individual Canadian investor, how are we going to hedge the currency risk? Please explain the different approaches that we can employ to protect and hedge our portfolio. Thanks.

Q: how can I go long with the cdn dollar without buying a futures contract, since that would require my to open a new account with a broker. looking for leverage and a long time play, how to you feel about this trade?
thanks
Auftar

Q: Is there an ETF which tracks the CDN $? I would like to play an increase in the currency without having to buy a futures contract.

Q: I believe the US dollar is significantly over-valued due to geopolitics, and I anticipate it will gradually return to more normal over the next 4-12 months. What strategy (or equities) would you recommend to take advantage of this return to normal. Shorting the US dollar is an obvious option, but I see it as a bit too risky.

Q: Hi,
I converted most of my cad to usd and have been doing investments in us companies and recently sold many of the tech due to the noise regarding interest rates. How can I preserve my usd cash from depreciation against cad without changing back to cad . I have seen a drop from 1.3 conversion to now at 1.2 and it seems the general view is that it may hit 1.

Q: I have a diversified US dollar portfolio, hold US stocks, and with the increasing in the US$, I have a 40% FX gain. I want to continue to hold the US stocks but also lock in the FX gain. To lock it in, I take it that a hedge would be required. Please suggest ways I could do this, including the "instruments". I am asking you this because I assume it is a good idea, aka action to take.
With the COVID-19 related decline in the stock market, I now clearly understanding the reasons and impact of diversifying in other currencies other than just Canadian $s...thanks for hammer it home to me.......Tom

Q: Financial Post: Posthaste: Canadian dollar poised to become the ‘hottest money’ in the industrialized world.
https://business.financialpost.com/executive/posthaste-canadian-dollar-poised-to-be-the-hottest-money-in-the-industrialized-world

What are your thoughts and is there an ETF in Canada where I can hedge so I can benefits if Canadian dollar rises

Thanks for your great service
Hector

Q: We have a lot of US stocks that I have done well on as well we have a bunch of ETF 's that hold US equities that hedge the dollar. I feel that the US dollar is starting to lose steam and we don't want to give up our individual US companies but don't want to lose on our dollar exposure. What is the most cost effective way to protect against dollar exposure for the long term?

Q: Hi Group - I am getting a bit concerned about the US dollar verses CAD, I hold 50% of my portfolio in us funds. If I believe that the US stock holdings I presently own are way more solid than Canadian companies but am concerned about the US dollar dropping significantly what defensive strategy should I consider? PS I trade with RBC direct investing Thanks

Q: A Canadian Investor with over 40 % a portfolio in US securities and additional Canadian companies either doing business in the US or reporting in US dollars. A lot of talk about 2019 being a down year for US dollar against the Canadian dollar.
How does one hedge this risk.

Q: if the Canadian dollar falls vs U S dollar or other way what is the best etf to use to protect your us investments?

Q: Peter; Is there a ETF or other option to buy the CAD ? Thanks. Rod

Q: Hello,
I have approx 25% of my portfolio in my US$ account and those funds will remain in US$ for the long term. When the CAD$ strengthens vs the US$, my overall portfolio balance drops as a result of this.
Are you aware of an ETF or other product that would protect my overall portfolio balance and act as a hedge from a strong resurgence in the CAD$ to more or less prevent losses simply as a result of the CAD$ going up in value? Also, if there is such a product, how much would I need to buy to cover 25% US$ balance?
Conversely, is there a pairs trade that you could suggest that would keep my accounts balanced at the current levels regardless of which way the Cad$/US$ goes? Again, is there a percent amount of my overall portfolio balance that I would need for each of these to more or less keep me revenue neutral and not have to worry about currency fluctuations?
Thank you.