Hedged or Unhedged
Hi guys,
Hoping someone can provide some insights. I know there is a bunch of posts on this already but was looking for some clarity specific to my situation. I realise i am not as knowledagle on alot of this as the people here so please be kind!
I am 25M who started investing just before/durting COVID. my income has never been that consistent but i've managed to invest into a portfolio currently at around 26k. The bulk of my portfolio (at 35%) is Foundation series Total World (hedged) with another 25% being the Foundation series US500 (hedged). I also have around 11% into the Foundation series HIgh growth fund. The rest is a spattering of other ETFs (NZ top 50, OZ top 20 etc) i contributed to years ago - note the only funds i contribute to now are the three above.
My question is this: i mainly was contributing to the hedged total world fund as when i started out that was just the one i went for at the time. Now i understand a bit more about hedged vs unhedged i was planning on contributing to the unhedeged total world fund to try and work towards a 50/50 split, although this would take a long time at my current income level. I've been reading more about whether to go hedged or unhedged and it seems the consensus is that if the NZD is weak (below 0.60) to go hedged and otherwise go unhedged. As the NZD is at .57 currently, should i be going hedged right now vs aiming to go for a 50/50 split eventually? Or am i just over thinking it. For clarity, i am aiming for the portfolio to be used for retirement although i may take a small amount out sooner (as in 5ish years) to help with a house deposit although i understand this would a less than ideal scenario and i am not aiming for it.