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  5. VIU: VI and VEF have been suggested as Canadain dollar alternatives to VXUS. [Vanguard FTSE Developed All Cap ex North America Index ETF]
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Q: VI and VEF have been suggested as Canadain dollar alternatives to VXUS. Both VI and VEF are hedged to the Canadian dollar. Is it better to be hedged or unhedged to the Canadian dollar? I was considering VIU which I believe is the unheadged version of VI.

Thanks
Asked by J Stephen on August 12, 2024
5i Research Answer:

Yes, VIU is unhedged. We generally prefer unhedged ETFs. There is a small cost to hedging. We also see currency as yet another form of diversification. We try not to make currency predictions, but if asked to right now we would continue to see the US dollar as stronger than the CAN$, so we would be even less inclined to hedge today. 

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