The last part is the tricky part. Say you buy a TIPS maturing in a year’s time. If when it matures the FX has moved, if you haven’t hedged the FX then there’s every chance the FX movement will dominate the bond return (e.g. today you sell £10k to buy $12.5k, buy a T...
So they're sitting on a lot of inventory, hedged, of course. And then the carrying costs are rising because interest rates are going up, and at the same time, their margin calls on their hedges are going against them because the prices are going up. And so they're having...
If an offshore fund / ETF does not haveUK reporting statusthen capital gains are payable atincome tax rates. That’s bad news because capital gains tax rates are much friendlier than income tax. The £6,000 tax-freecapital gains allowance– falling to £3,000 from 6 April 2024 – wo...
CPSLprovides investors access to continuous downside protection. As each underlyingETFreaches its reset date, a new outcome period begins with a 100% protection buffer and clearly defined upside cap. The result is a continuous and highly hedged experience, with measurable potential upside participation...
Unlike a covered put, where the seller has a short position in the underlying stock, in a naked put, the seller does not have such a position. This means they are not hedged against the risk of the option. Risk Profile The risk associated with writing a naked put is substantial, though...
We’ve just had Vanguard move into Canada. The equivalent to VTI is VUS, for those of us who don’t wish to move money into US$ (Norbert’s Gambit helps with the conversion costs if you do). VUS is currency hedged which will add a little drag, but the 0.17% MER is not too ...
But paying a premium does mean a slightly reduced dividend yield compared to that if the ETF had been bought at no discount to NAV. However, that would be the case with direct share investment as well. All in all I have come to the conclusion that in the UK market, UTs/OEICs should...
For this reason, the Fed doesn't set a specific goal for maximum employment, and it is largely determined by employers' assessments. Maximum employment does not mean zero unemployment, as at any given time there is a certain level ofvolatilityas people vacate and start new jobs. Hyperinflation...
For this reason, the Fed doesn't set a specific goal for maximum employment, and it is largely determined by employers' assessments. Maximum employment does not mean zero unemployment, as at any given time there is a certain level ofvolatilityas people vacate and start new jobs.1314 ...
Downside riskcan be adequately hedged by buying put options, the price of which depends on market volatility. Astute investors tend to buy options when the VIX is relatively low and put premiums are cheap. Such protective puts will generally get expensive when the market is sliding; therefore, ...