Your portfolio has a hidden currency bet.
Most European investors hold S&P 500 ETFs, MSCI World, or US tech stocks — and don't realize they're 60–70% exposed to the US dollar. When EUR strengthens, you lose returns even if markets are flat.
QUICK PRESETS
Your Portfolio
100% ✓US Equities & US Bonds
S&P 500, NASDAQ, VTI, QQQ, TLT, individual US stocks
European Equities & Bonds
BTP, Bund, FTSE MIB, CAC 40, EU corporate bonds
UK Equities
FTSE 100, UK Gilts, UK individual stocks
Global ETFs (VWCE / MSCI World)
VWCE, MSCI World UCITS, FTSE All World, SPY in EUR
Emerging Markets
China, India, Brazil, LatAm ETFs
Commodities, Gold & Crypto
Gold, Silver, Oil, Bitcoin, Ethereum
Cash & EUR-hedged Bonds
EUR cash, money market, hedged bond funds
Currency Exposure
KEY INSIGHT
68% of your portfolio is USD-denominated. A 10% EUR strengthening would reduce your EUR returns by ~6pp — even if markets are flat.
FX Impact on Your Portfolio
Holding asset prices constant — pure currency effect on EUR-denominated portfolio value
EUR/USD moved ±15% or more in 2015, 2022, and 2014. FX impact compounds with asset price moves. Global ETFs (VWCE, MSCI World) assume 65% USD, 15% EUR, 8% GBP, 5% JPY underlying.
SHOULD YOU HEDGE?
Currency-hedged versions of global ETFs (e.g. iShares Core MSCI World EUR Hedged) remove FX risk but cost ~0.3–0.5%/year in hedging premium. Over long periods, EUR/USD tends to mean-revert — so unhedged is often rational for 10+ year horizons.
The real risk is concentration: an investor with 70%+ USD exposure is effectively making a macro bet on the dollar, regardless of which stocks they own.
FULL RISK PICTURE
FX is just one dimension of risk.
Your portfolio also has concentration risk, scenario risk (China-Taiwan, US debt crisis), and liquidity risk. Run the full stress test — free, 2 minutes.
Run Full Stress Test →FX exposure estimates are approximations based on index composition. Currency correlations are historical averages. Not financial advice.