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If We Understand The Tool, We Can Use It Well
Frying pans are lovely things, but they're not so great at making soup. Of course, having been a bachelor, I have done that, but that then just adds that piquancy of personal experience to
ISHG: A Useful Dollar Hedge For U.S. Investors
Summary
- ISHG is best used as a hedge against a significant decline in the US dollar, not as a core money-making investment.
- The ETF offers low credit and interest rate risk, but its long-term performance has been poor in nominal and real terms.
- Its value lies in insurance for USD-based investors worried about currency risk, providing positive carry unlike other FX hedges.
- For those not concerned about USD weakness, ISHG is not a compelling long-term hold or speculative tool.
Tim Worstall is a wholesaler of rare earth metals and one of the global experts in the metal scandium. He is also a Fellow at the Adam Smith Inst in London and an writer for a number of media outlets, including The Times (London), Telegraph, The Register and even, very occasionally indeed, for the WSJ. This account is linked with that of Mohamad Machine-Chian: https://seekingalpha.com/user/52914142/comments
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