Q – Is hedging US stocks with Canadian ETFs a good way to protect against loss if the loonie goes down? – Ron L.
A – If I understand your question correctly, the answer is no. If you own US stocks and the loonie goes down, the value of your American holdings will increase in Canadian dollar terms. The only reason to hedge US stocks is if you believe the loonie will rise against the greenback – which is unlikely as long as the trade war continues. – G.P.