Stats Global markets and exchanges Currency hedging

Hedging MSCI World added 11 basis points a year since 2001

YearHedged to USDLocal currencyUnhedged USDHedged 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.

7.57% a yearMSCI World, hedged
7.46% a yearMSCI World, unhedged
+10.57 pointsHedging's best year, 2014
-8.19 pointsHedging's worst year, 2017

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