Hedge or Non-Hedge for S&P 500?

General
1

Hi all,
Quick question for the wider audience, particularly for UK investors, regarding investments in USD-based assets, with the S&P 500 as a common example.

Do you recommend hedged or non-hedged options?

My thinking is that in the short term (1-3 years), hedged might offer better protection, while for longer-term (5+ years) investments, non-hedged could outperform as the USD would likely outweigh any currency fluctuations.

This seems especially true over the past year, where hedged versions of the S&P 500 saw ~10% gains compared to non-hedged, which is a significant difference.

Would love to hear your thoughts!

Thanks

2

I have some hedged funds and some un-hedged.
I don’t invest in the S&P 500 directly, but through World Index funds.
My hedged world index outperforms my unhedged world fund even when the £ is doing less well against the $. It is simply a better fund. Ishares IGWD vs Vanguard VWRP.
My take is that over the longer haul the £ has consistently fallen against the $. So a hedged fund is a sensible investment route. I am an invest and forget style investor. With a caveat that I monitor and will bail and buy when required.