"EUR Hedged" in an ETF's name. What does it change?
It takes the dollar's moves out, with a currency contract renewed each month.
Same world index, in euros: 2024, +26% not hedged, +19% hedged. 2025, +7% not hedged, +16% hedged.
The dollar rose in 2024 and fell in 2025. The hedge removed both.
The catch: while dollar rates are above euro rates, the hedge costs about the gap. Now about 1.4% a year (Fed 3.75 to 4.00%, ECB 2.50%). The fee is higher too: 0.55% against 0.20%.
Did you know a share class could change the result this much?
Education, not investment advice.
