Stats › Global markets and exchanges › Currency hedging
Hedging MSCI World added 11 basis points a year since 2001
| Year | Hedged to USD | Local currency | Unhedged USD | Hedged advantage |
|---|---|---|---|---|
| 2014 | +5.67% | +5.92% | -4.90% | +10.57 pts |
| 2015 | +5.02% | +5.33% | -0.81% | +5.83 pts |
| 2016 | +6.15% | +5.34% | +1.00% | +5.15 pts |
| 2017 | +16.84% | +15.23% | +25.03% | -8.19 pts |
| 2018 | -8.96% | -10.99% | -13.79% | +4.83 pts |
| 2019 | +24.64% | +21.67% | +22.01% | +2.63 pts |
| 2020 | +2.50% | +0.84% | +7.82% | -5.32 pts |
| 2021 | +19.43% | +18.70% | +11.26% | +8.17 pts |
| 2022 | -4.60% | -7.00% | -14.45% | +9.85 pts |
| 2023 | +19.95% | +16.16% | +18.24% | +1.71 pts |
| 2024 | +14.14% | +11.28% | +3.82% | +10.32 pts |
| 2025 | +23.10% | +20.60% | +31.22% | -8.12 pts |
The three columns come from one table on one document, so they are directly comparable. The advantage column is the difference between the first and third. Source: MSCI EAFE 100% Hedged to USD factsheet, as of 30 June 2026.
A US investor buying foreign shares also buys the currency they are priced in. Hedging that currency away changed MSCI World's return by about a tenth of a point a year since 2001, while cutting volatility. It is a risk decision, not a return decision.
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