Practical FX hedging options for retail UK investors [Members]
For MOGULS by The Investor
on August 20, 2026
Last time, Monevator guest contributor Ho Simpson explained what really happens when you currency hedge something in your portfolio – whilst simultaneously hammering our finance dictionary like an online Scrabble player who has bet their house on finding a 1,500-point word. This time he looks at the practical ramifications and tells us what he’s doing in his own portfolio and why, before concluding with an FX hedging jargon buster that should make Billions more intelligible if you ever commit to a rewatch.
The funny thing about passive investing is that we are all so-called macro tourists. Both the hedged and the unhedged exposures are macro trades. And many of us are running these trades without realising that’s what we’re doing.
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Thanks for the insights! No great expertise here but I’ve been holding my Nasdaq ETF in GBP hedged, EQGB, as a medium term partial hedge against the mooted dollar devaluation, potentially showing some signs of playing out. What do I or anyone know of the future etc. Hadn’t really considered the cost of the hedging for the fund and what that will do to the returns. In general over a couple years there’s not been huge swings against the non GBP hedged version, but things can change. (Japan!)
What’s the thinking on basket of currency options to spread the risk further? My concern would be GBP over the longer term given the direction of travel, Euro would be the next port of call for my personal outlook.