Currency hedged

Currency hedging impacts risk management in ETFs.

Hedged ETFs use financial instruments to reduce the impact of currency exchange rate fluctuations on investment returns. The goal is to decrease volatility and increase the stability of returns.

Unhedged ETFs do not employ hedging measures, leaving the fund's performance subject to currency market fluctuations. This approach entails higher currency risk but also offers the potential to benefit from favorable exchange rate movements.