Q: With all the noise around Mr. Trump I’m thinking your
Canadain dollar could take a beating.
How could someone hedge against this possibility,I
Have been buying two etf’s zmid and vfv thinking that if the cad goes down these two etf’s will go up ?
Thank for the help
Sam
Canadain dollar could take a beating.
How could someone hedge against this possibility,I
Have been buying two etf’s zmid and vfv thinking that if the cad goes down these two etf’s will go up ?
Thank for the help
Sam
5i Research Answer:
It is possible that the Canadian dollar continues to weaken, although there are some that believe Trump could want a weaker US dollar for boosting exports and encouraging domestic manufacturing.
If the Canadian dollar weakens against the USD, we would prefer to own an unhedged ETF, such as ZMID or VFV.
Authors of this answer, directors, partners and/or officers of 5i Research and/or affiliated companies have a financial or other interest in VFV.