Posted on Jun 4, 2022
In a previous post I noticed how the aggh etf had a poor performance with respect with its benchmark in the latest 3 years: just look at the graph.
Let’s assume that I am reading the graph correctly.
I do not really know why aggh has performed this poorly; I assumed that it is because of eur to usd currency cross variations. Was I wrong? Or partially wrong?
Let’s look at the graph of iwde, which also has eur hedging: the etf and its benchmark stick together!
Is there something wrong with aggh’s index replication method? They do not buy all the bonds in the index, but still…
EDIT I did read incorrectly a graph: aggh’s benchmark is expressed in usd, while iwde’s benchmark is expressed in eur. There are other etf with eur hedging that have lost value significantly with respect to their benchmark, even though not as much as aggh as; examples: ibte, lqee.