# Hedge or Non-Hedge for S&P 500?

**URL:** <https://community.investengine.com/t/hedge-or-non-hedge-for-s-p-500/1887>\
**Category:** General\
**Created:** [27 September 2024 10:55 UTC](https://community.investengine.com/t/hedge-or-non-hedge-for-s-p-500/1887 "2024-09-27T10:55:33Z")\
**Posts on this page:** 2\
**Page:** 1

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**Author:** ![samurai](https://avatars.discourse-cdn.com/v4/letter/s/bc79bd/32.png) [@samurai](https://community.investengine.com/u/samurai)\
**Post date:** [27 September 2024 10:55 UTC](https://community.investengine.com/t/hedge-or-non-hedge-for-s-p-500/1887/1 "2024-09-27T10:55:33Z")

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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

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**Author:** ![Kevin\_000](https://avatars.discourse-cdn.com/v4/letter/k/a88e4f/32.png) [@Kevin\_000](https://community.investengine.com/u/Kevin_000)\
**Post date:** [28 September 2024 10:31 UTC](https://community.investengine.com/t/hedge-or-non-hedge-for-s-p-500/1887/2 "2024-09-28T10:31:33Z")

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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.