RetireJapan

shadows wrote: ↑Sun Dec 11, 2022 4:36 am Not much thought into currency hedging products to be honest. You mean like a global tracker using FX into currencies or investments like the Rakuten Total Bond index you mentioned earlier?

Seems risky and pricy vs non hedged. For a guy like me, ignorant with investing, I do know that I spend in yen and will be using yen in the future.
It's not in my interest to constantly monitor and trade around currencies. Plus admin and transaction fees seem costly over time...plus the feeling that currency hedging would tend to move against the yen in the long run...

I'm trying to talk myself out of hedging due the risks and constantly monitoring a portfolio. Perhaps non hedged bond CDA is best for this novice.

Who knows?

Tkydon wrote: ↑Sun Dec 11, 2022 4:49 am

shadows wrote: ↑Sun Dec 11, 2022 4:36 am Not much thought into currency hedging products to be honest. You mean like a global tracker using FX into currencies or investments like the Rakuten Total Bond index you mentioned earlier?

Seems risky and pricy vs non hedged. For a guy like me, ignorant with investing, I do know that I spend in yen and will be using yen in the future.
It's not in my interest to constantly monitor and trade around currencies. Plus admin and transaction fees seem costly over time...plus the feeling that currency hedging would tend to move against the yen in the long run...

I'm trying to talk myself out of hedging due the risks and constantly monitoring a portfolio. Perhaps non hedged bond CDA is best for this novice.

Who knows?

No, In the Mutual Fund Space, many Mutual Funds are available in both Un-Hedged and Hedged versions, usually denoted as （為替ヘッジあり）or （Ｈあり）.
When the Yen was Stronger it probably didn't make much sense to select the Hedged option as you would like to benefit from any increase in fund value of overseas assets due to Yen weakening, but today with the direction of the Yen less certain, it may be a good idea to select the Hedged version of the Mutual Fund. Then, the Yen Value of the Mutual Fund units purchased will move up and down directly proportional to the Price Moves in the Foreign Currency denominated Underlying Assets, regardless of any change in the exchange rate.

You do not have to do anything. The Hedging will be executed by the Fund Manager.

Not a recomendation. Just an example I was quickly able to find...
e.g.

The Goldman Sachs Australia Hybrid Securities Fund is available in multiple versions

ＧＳオーストラリア・ハイブリッド証券ファンド 豪ドルクラス

Australian Dollar Denominated - obviously No Hedge

ＧＳオーストラリア・ハイブリッド証券ファンド 米ドルクラス（為替ヘッジあり）

US Dollar Denominated - Hedged (USD to AUD)

ＧＳオーストラリア・ハイブリッド証券ファンド 米ドルクラス

US Dollar Denominated - No Hedge

ＧＳオーストラリア・ハイブリッド証券ファンド 円クラス（為替ヘッジあり）

Yen Denominated - Hedged (YEN to AUD)

and maybe more...