WisdomTree: Why Take Currency Risk If Diversification Benefit Is Declining?
September 10, 2014 at 11:00 AM EDT
We have been exploring the case for layering in foreign currency (“FX”) on top of foreign equity returns. One of the most common arguments I have heard for taking on FX risk in international equity portfolios in an unhedged fashion is that FX can be a portfolio “diversifier.” But does FX provide a...