Uploaded March 2026 | Updated September 2026, 2 weeks ago
Currency movements can have a big impact on your investments — especially when investing internationally. In this video, we explain how currency hedged ETFs work and how they can help reduce foreign exchange (FX) risk.
When you invest in global markets, your returns aren’t just driven by stock performance, exchange rates play a role too. A strengthening pound, for example, can reduce returns from overseas investments.
Currency hedged ETFs aim to remove this currency risk, allowing you to focus purely on the performance of the underlying assets.
In this video, we cover:
00:00 Currency Hedged ETFs Explained
00:28 Understanding currency risk
01:09 Why currency moves matter
02:01 What currency hedging does
02:47 Cost and considerations
03:09 In summary
If you’re investing in global ETFs or looking to diversify internationally, understanding currency hedging is key.
👉 Explore Xtrackers ETFs on InvestEngine: investengine.com/etfs/xtrackers
👉 Learn more about ETF investing on our blog: blog.investengine.com
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Disclaimer: Capital at risk. in paid partnership with Xtrackers by DWS. The value of your portfolio with InvestEngine can go down as well as up, and you may get back less than you invest. ETF costs also apply. This video is for information only and is not financial advice. Tax treatment depends on individual circumstances and may change. Past performance is not a reliable indicator of future results.
Currency movements can have a big impact on your investments — especially when investing internationally. In this video, we explain how currency hedged ETFs work and how they can help reduce foreign exchange (FX) risk.
When you invest in global markets, your returns aren’t just driven by stock performance, exchange rates play a role too. A strengthening pound, for example, can reduce returns from overseas investments.
Currency hedged ETFs aim to remove this currency risk, allowing you to focus purely on the performance of the underlying assets.
In this video, we cover:
00:00 Currency Hedged ETFs Explained
00:28 Understanding currency risk
01:09 Why currency moves matter
02:01 What currency hedging does
02:47 Cost and considerations
03:09 In summary
If you’re investing in global ETFs or looking to diversify internationally, understanding currency hedging is key.
👉 Explore Xtrackers ETFs on InvestEngine: investengine.com/etfs/xtrackers
👉 Learn more about ETF investing on our blog: blog.investengine.com
📱 Download the IOS app: apps.apple.com/gb/app/investengine?
📱 Download the Android app: play.google.com/store/apps/details?id=com.investengine.app
Don't miss out on our regular finance education videos – hit the subscribe button to stay informed and empowered on your investment path.
Want to talk about it? Join the InvestEngine Community: community.investengine.com
Follow us on social media:
Instagram: instagram.com/investengine
TikTok: tiktok.com/@investengine
LinkedIn: linkedin.com/company/investengine
Twitter (X): https://x.com/InvestEngine
Threads: threads.net/@investengine
Reddit: reddit.com/r/InvestEngine
Disclaimer: Capital at risk. in paid partnership with Xtrackers by DWS. The value of your portfolio with InvestEngine can go down as well as up, and you may get back less than you invest. ETF costs also apply. This video is for information only and is not financial advice. Tax treatment depends on individual circumstances and may change. Past performance is not a reliable indicator of future results.
