How Currency-Hedged ETFs Are Beating the S&P 500

Lucas and Luna unpack why currency-hedged ETFs have crushed unhedged international funds in 2026 — and how the weak dollar is misleading investors. With the dollar index hovering near 99 and the Korean Won surging 8% in a week (EWY ETF up 8%), they examine why simple diversification fails when currency moves overwhelm stock returns. Lucas walks through the mechanics of hedging costs, the yen carry trade unwind, and why the Fed's 3.6% interest rate on reserves makes hedging expensive. Luna points out that the MSCI EAFE hedged ETF has outperformed the S&P 500 year-to-date. They also discuss the 'hidden tax' of energy inflation on unhedged commodities exposure, and why Taiwan's tech-heavy export machine (EWT up 4.2%) benefits from a weaker dollar but hurts unhedged U.S. investors. A sharp, practical episode for anyone holding international equities. #CurrencyHedgedETFs #WeakDollar #EWY #EWT #KoreanWon #TaiwanDollar #FedRate #CarryTrade #MSCIEAFE #InternationalDiversification #Investing #Economics #Forex #FexingoBusiness #BusinessPodcast #CurrencyConversations #EnergyInflation #PortfolioStrategy Keep every episode free: buymeacoffee.com/fexingo