r/SwissFIRE • u/HopeGloomy4631 • Mar 21 '26
USD/CHF Currency Loss
Hello,
I live in Switzerland and I have been investing in the stock market for some time. I am writing this today because since USD/CHF has been going down pretty much forever my investments have been affected by some significant currency losses.
If my home currency was EUR I could simply wait for the currency to go back up, but because I use CHF I really need a hedging against currency losses. Do you guys use any?
I already lost a lot of money because of this so any advice or ideas would be super helpful!
Thank you all in advance!
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u/weeeaaa Mar 22 '26
There are currency hedged ETFs, what exactly appears to be the problem?
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u/HopeGloomy4631 Mar 22 '26
I want to invest in individual US stocks. Do you have any hedging strategies in this case?
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u/fishanddipflip Mar 22 '26
Why can you wait for € to go back up but not for CHF?
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u/HopeGloomy4631 Mar 22 '26 edited Mar 22 '26
Because CHF is a far stronger currency than EUR and long term USD/CHF has been going down unlike USD/CHF. That is why I really need a hedge sgainst currency losses
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u/makaros622 Mar 22 '26
Currency exchange fluctuations won’t matter long term
Same thing can happen with EURUSD pair.
If you want to definitely hedge then hedge.
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u/HopeGloomy4631 Mar 22 '26
It doesn’t matter for most currencies, but CHF is a particular one since it is a very strong one. USD/CHF has been going down forever because of that.
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u/makaros622 Mar 22 '26
This is true as USD has depreciated a lot lately compared to CHF but you do understand that now you buy essentially more shares for the same CHF amount right?
In times like nowadays you end up buying more shares for the same CHF amount.
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u/HopeGloomy4631 Mar 22 '26
Sure it is a good buying opportunity, but for the shares I was already holding the value in CHF is down. So that’s why I am looking for a hedging strategy. Do you know any?
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u/Scary_Twist_8072 Mar 22 '26
Don't buy and hold USD. Buy USD and buy something better long term with it, like VT.
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u/CHaoticFondue Mar 21 '26
Your investments are not affected by currency loses, they are affected by bad economy or poor performance of your stocks.
As a matter of fact, for every USD you or your companies hold, you (they) can get a 4% yearly for free just by investing in US bonds. For example, since the USD peak at 1=1 in 2019, the USD has lost ~21% of the value (0,79 CHF today), but if you had just changed your CHF to USD back in 2019 and invested in 4% bonds your earnings would sum to a solid 31%.
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u/Sea-Put3596 Mar 21 '26
Dollar was strengthening recently so it should support you but against weakening I was/am using Chfusd futures through my broker.
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u/Pleasant-Carbon Mar 21 '26
Waste of money.
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u/HopeGloomy4631 Mar 22 '26
Why do you think that? I was also told Futures contracts were a great way to hedge currency losses.
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u/Pleasant-Carbon Mar 22 '26
Because you pay for that expectation. It is only worth it for short-term and higher than expected changes. But that is completely random and over time evens out.
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u/HopeGloomy4631 Mar 22 '26
Well in the long term I expect USD/CHF to go down like it has been the past decades and since CHF is a strong currency
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u/Sea-Put3596 Mar 22 '26
So in that case you can hedge yourself through the futures or option market
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u/HopeGloomy4631 Mar 22 '26
What do you think of the reply below from Pleasant-Carbon saying that long term Futures are a wadte of money?
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u/Sea-Put3596 Mar 22 '26
I don't know about his positioning. What I can say it works for me or anyone who holds dollar assets and wants to hedge out fx risk against home ccy. As simple as that, basics economics of hedging.
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u/alter_ekko Mar 21 '26
"Just put it all in world index and chill bro!!"