I am early retired and I live off my dividends. Most of my investments are in CEFs registered in the US (JEPI, DIVO, GPIX, RQI, RNP, UTF, BUI, and a few others), as well as European Government Bonds in USD. Together they provide me a sufficiently high dividend to live. The CEFs have an average yield of 6% (after US taxes) and the government bonds have a yield of 4.7% (after all taxes).
The problem is that all my investments are in USD. The USD is now very strong, and I am afraid it will weaken. Now 1 Euro is 1.09 USD and there is a real possibility that the USD will weaken to 1 Euro to 1.40 USD (what it was 10 years ago) which means I will be 30% poorer in Euros. If at the same time the share market crashes by 30% I will have severe financial troubles.
The problem is that I cannot find funds in Euros that are comparable to the CEFs available in the US (with a growing price, and a dividend of 6%, paid either monthly or quarterly). I am looking for something that is not only traded in Euros (like VUSA), but also Euro Hedged, so if the Euro strengthens I don't lose out. I have been searching for ETFs that satisfy my 'wishlist', but I haven't been able to find anything.
Does anybody have any idea what direction I should look at, ETFs I can look at, etc. I don't know how to hedge my portfolio. Shall I look into it? I think it would be rather expensive, would it not?
The problem is that all my investments are in USD. The USD is now very strong, and I am afraid it will weaken. Now 1 Euro is 1.09 USD and there is a real possibility that the USD will weaken to 1 Euro to 1.40 USD (what it was 10 years ago) which means I will be 30% poorer in Euros. If at the same time the share market crashes by 30% I will have severe financial troubles.
The problem is that I cannot find funds in Euros that are comparable to the CEFs available in the US (with a growing price, and a dividend of 6%, paid either monthly or quarterly). I am looking for something that is not only traded in Euros (like VUSA), but also Euro Hedged, so if the Euro strengthens I don't lose out. I have been searching for ETFs that satisfy my 'wishlist', but I haven't been able to find anything.
Does anybody have any idea what direction I should look at, ETFs I can look at, etc. I don't know how to hedge my portfolio. Shall I look into it? I think it would be rather expensive, would it not?
Statistics: Posted by Wise_Saver — Thu May 16, 2024 10:45 am — Replies 0 — Views 108