EPISODE · Feb 28, 2024 · 26 MIN
Are UK Investors Worse Off Than US Investors Due To FX? - Jasper Invests
from The Making Money Simple Podcast · host Ryan King
Jasper (@jasperinvests) joined me on this episode to talk about FX rates and how they impact us as UK investors. A very important topic that most aren't aware of.First, we discussed the S&P 500 returns for US investors compared to UK investors. Surprisingly, and we dug into the historical data, the returns can vary massively in any individual year.There can be huge swings and differences in returns that US and UK investors receive in any given year, all because of FX. However, over the long term, FX rates generally tend to be stable between the major currencies. Although, and as expected, in the short term this isn't always the case.We spoke through two ways to mitigate this FX risk and whether it's worth to mitigate this risk at all.Finally, we touched on global index funds and the impact of FX.Listen to the full episode for all the details!Timestamps0:00 - Intro1:02 - S&P Return UK vs US Investors5:25 - Two Ways To Mitigate Risk9:42 - Historical Returns UK vs US Investors14:02 - Long Term Impact16:17 - Do We Hedge FX Risk?19:58 - Benefits of Index Funds21:00 - Summary25:09 - Outro-----------------------------------------More investing:📝 Download my free investing guide to help you start investing - https://www.makingmoneysimple.co.uk/Free-Investing-Guide📕 Get my book Stop Waiting, Start Investing (available as a physical, digital and audiobook) - https://www.makingmoneysimple.co.uk/swsi-book-----------------------------------------⚠️ Disclaimers: I am not a financial advisor and this does not represent financial advice, it is for entertainment purposes only. Please seek professional advice to get the best information for your personal situation. When investing, your capital is at risk and you may get back less than invested. Past performance does not guarantee future results.-----------------------------------------📥 Get in touch: https://www.makingmoneysimple.co.uk/contact
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Are UK Investors Worse Off Than US Investors Due To FX? - Jasper Invests
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