Gains, a hedged fund would make currency gain if the yen appreciates. (Disregarding index movements).
You cannot avoid currency volatility with a hedged fund. You can just increase your exposure in one direction and decrease it in another.
I wish that were the case, but I am afraid your understanding is flawed.
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Finally, let me close out by quoting the fund manager you are investing with directly.
為替ヘッジあり」「為替ヘッジなし」どちらを選ぶ?
「為替ヘッジなし」と「為替ヘッジあり」はどちらがよいというものではありません。
為替変動の影響を受けた価格変動(比較的リスクが大きい)を受け入れられる人や今後円安に進むと考えている人、もしくは、通貨分散をしたい人は"為替ヘッジなし"を選ぶのがよいでしょう。一方、為替変動の影響を極力減らし、投資対象資産の値動きのリスクのみで運用したい(リスクを抑えたい)人や今後円高に進むと思う人は「為替ヘッジあり」を選ぶとよいでしょう。
(2022年12月28日作成)
Which should you choose: with currency hedging or without currency hedging?
``No currency hedging'' and ``with currency hedging'' are not necessarily better.
For those who can accept price fluctuations affected by exchange rate fluctuations (relatively high risk), those who believe that the yen will depreciate in the future, or those who want currency diversification, it is best to choose "no currency hedging". Probably. On the other hand, if you want to minimize the impact of exchange rate fluctuations and invest only with the risk of price movements of the assets you are investing in (to reduce risk), or if you think the yen will appreciate in the future, you may want to choose ``with currency hedging.''
(Created on December 28, 2022)
https://nextfunds.jp/semi/article67.html
Do you see through the PR talk?
if you want to minimize the impact of exchange rate fluctuations and invest only with the risk of price movements of the assets you are investing in (to reduce risk),
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or if you think the yen will appreciate in the future.
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When they talk about minimizing risk they are talking about minimizing the risk of the yen appreciating, and they are blatantly saying the product is suited for those betting on the yen appreciating.
Fin