Hedging your ETF could cost you $35,000. 1. Currency hedging isn’t free — it costs Canadian investors between 0.20% and 0.50% annually in drag, and that quietly compounds against you every single year. → 0.20%–0.50% 2. On a $100,000 investment over 25 years, that annual drag could mean $25,000 to $35,000 in lost growth — just for ‘protection’ you probably don’t need long-term. → $25,000–$35,000 3. If your TFSA or RRSP holds US equity ETFs for 10 or more years, unhedged options like VFV or XUS are typically the better pick because CAD/USD swings smooth out over time. → 10+ years 4. Hedged ETFs like VSP or XSP do make sense if your time horizon is just 1 to 5 years — think FHSA down payment savings where short-term volatility actually matters. → 1–5 years Full breakdown with the break-even calc 🌐 getwealthy.blog #CanadaFinance #PersonalFinance #CanadianMoney #MoneyTips #Canada
Certified Financial Planner (CFP) and Chartered Investment Manager (CIM) with over 17 years of experience in Canadian personal finance. Spent 10+ years at one of Canada's Big Five banks, the last 7 focused exclusively on high-net-worth clients. Every guide is written with the same depth I bring to real client work — Canada-specific, CRA-verified, and always free.