Q: Hello
I’m sitting on a fair amount of cash in Canadian dollars that I want to protect from falling against the US dollar without going through cost of conversion to US
Any instrument that I can use to earn some interest and hedge against an expected drop…I own a lots of ZSP.
Cheers
Peter
I’m sitting on a fair amount of cash in Canadian dollars that I want to protect from falling against the US dollar without going through cost of conversion to US
Any instrument that I can use to earn some interest and hedge against an expected drop…I own a lots of ZSP.
Cheers
Peter
5i Research Answer:
We do not have a good suggestion for an ETF that is essentially US cash but trades in Canadian dollars. US dollar exposure tends to be priced in US currency. There are hedged ETFs but all are equity or bond based, and not cash parking securities. One could utilize Norbert's Gambit to convert currency at essentially very low cost, and then invest the US dollars in HISU or UCSH.U but to stay in C$ and have 'US cash equivalent' will be very difficult.