Which positions are most sensitive to exchange-rate swings?
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 are the holdings that contribute most to portfolio volatility via currency and market moves — the ones whose value swings (including exchange-rate effects) most affect your portfolio volatility. I show the asset, its volatility contribution (%) and its annualized volatility (%).
| Asset | Volatility contribution (%) | Annualized volatility p.a. (%) |
|---|---|---|
| Apple Inc. | 20,89 | 22,99 |
| Microsoft Corp. | 15,98 | 30,50 |
| Deutsche Lufthansa AG | 14,51 | 30,67 |
| iShares Core MSCI World UCITS ETF | 10,69 | 9,00 |
| Bitcoin | 10,41 | 35,92 |
| Ethereum | 10,25 | 52,30 |
| MasterCard Inc. | 5,40 | 16,80 |
| SPDR MSCI USA Small Cap Value Weighted UCITS ETF | 3,96 | 20,84 |
| Gold | 3,19 | 24,43 |
| Xtrackers MSCI USA UCITS ETF 1C | 2,48% | 9,78 |
| iShares Core MSCI EM IMI UCITS ETF USD (Acc) | 2,27 | 16,53 |
What this table means: the top rows are the positions whose price moves (including those coming from exchange-rate changes for foreign-currency exposures) drive most of your portfolio volatility. Note that crypto and international stocks/ETFs appear among the largest contributors.
This page in other languages
Related questions
See this for your own portfolio
The assistant answers the same question about your own holdings, with your figures and today’s prices. Import from your broker, or open the demo portfolio and ask it there.