Why Currency Hedged ETFs Are Beating the S&P 500 in 2026

In episode 27 of Currency Conversations, Lucas and Luna break down the surprising outperformance of currency-hedged ETFs over the S&P 500 in May 2026. They explore how the weak dollar, geopolitical shocks like the Iran conflict, and diverging central bank policies are creating opportunities for hedged strategies. With the dollar index hovering near 99 and the trade-weighted dollar slipping, investors are increasingly turning to ETFs that strip out currency risk. Lucas explains the mechanics of hedging, using specific data from EEM, EWY, and EWT to show how Korea and Taiwan are leading the charge. Luna questions whether the trend is sustainable and asks about the hidden risks. The episode also touches on the JOLTS job openings surge and euro zone inflation, tying them to currency markets. A must-listen for anyone curious about how currency movements can amplify or destroy equity returns. #CurrencyHedgedETFs #SP500 #WeakDollar #KoreaWon #TaiwanDollar #EmergingMarkets #ETFs #Hedging #CurrencyRisk #DollarIndex #TradeWeightedDollar #IranWar #Inflation #CentralBanks #Economics #FexingoBusiness #BusinessPodcast #CurrencyConversations Keep every episode free: buymeacoffee.com/fexingo