Canadian Money Forum banner

1 - 4 of 4 Posts

·
Banned
Joined
·
1 Posts
Discussion Starter #1
Regarding currency risk. I'm an average Canadian investor - I'm just investing for retirement. I make about 6 to 10 trades per month on an self-directed RRSP account and just buy Vanguard ETFs via Questrade.

What I'm wondering is... should I be concerned about currency risk? Since I'm buying the Vanguard funds in USD at many different times of the year, maybe the currency risk is less?

Questrade has a USD in RSP feature but sadly I cannot determine if I would benefit from it.

Should I be concerned?
 

·
Registered
Joined
·
12,773 Posts
Depends on what you're investing in. If you're buying world market ETFs denominated in USD, you're not so much exposed to CAD/USD fluctuations, but CAD/world currency risk.

If you're invested over a long time frame, the risk is also lower, esp. when compared to the cost of hedging. One way you can hedge fairly cheaply is to buy US assets using US margin (borrow USD).
 
1 - 4 of 4 Posts
Top