Which currency exposures help diversify my portfolio?
A currency question asks how much of a portfolio moves with an exchange rate rather than with the assets themselves. A fund priced in one currency can hold assets in several, so the exposure is rarely the currency on the ticket.
Worked through on a sample portfolio. The figures below are that portfolio’s, not yours.
Here’s your currency breakdown and what adds diversification in your portfolio.
| Asset | Weight (%) | Value (EUR) |
|---|---|---|
| EUR | 50,53% | 45.974,84 € |
| USD | 22,77% | 20.721,48 € |
| Crypto | 8,61% | 7.835,60 € |
| Cash | 6,06% | 5.510,23 € |
| Precious metal | 5,03% | 4.575,79 € |
| TWD | 1,00% | 907,08 € |
| JPY | 0,97% | 882,20 € |
| KRW | 0,84% | 765,90 € |
| HKD | 0,73% | 660,52 € |
| GBP | 0,58% | 529,32 € |
What this means
- The largest currency exposures are EUR and USD, together representing a majority of your portfolio.
- Non-traditional currency exposures that help diversification are Crypto and Precious metal — they behave differently from equities and cash.
- Smaller allocations (TWD, JPY, KRW, HKD, GBP and others) add regional currency diversification beyond EUR and USD.
Notes
- The breakdown shown reflects the available currency coverage of 100,00%.
- Values are the market value per currency, not cash holdings only.
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