Plus tier · advanced calculator
CAD vs USD exposure is a Plus-tier tool. Try the math here for free; saving scenarios, AI dispatches against your portfolio, and exports unlock on a paid plan.
§ Calculator · Investment
Currency exposure (CAD vs USD vs intl)
What this is
How much FX risk is hiding in your portfolio?
Most Canadian portfolios are heavy on US equity for diversification. But that means a chunk of your wealth is in USD — when the loonie strengthens, that USD position drops in CAD terms. Knowing your FX exposure helps you decide if currency-hedged ETFs make sense.
- ·Pure home bias (100% CAD) — TSX-only. Low FX risk but bad diversification: you're betting on energy + financials.
- ·Standard couch-potato (40-50% CAD, 30-40% US, 10-20% intl) — typical Canadian portfolio.
- ·Hedged ETFs (XSP, ZUE, VEF) — strip out USD/CAD swings. Cost: 0.10-0.20% extra MER + slight tracking drift.
Foreign weight
60.0%
CAD home bias
40.0%
FX risk (1σ)
4.8%
1σ swing (CAD)
$24,000
hedge bonds consider equity
Foreign weight at 60% carries material FX risk; hedge bonds and consider an equity hedge.
Educational. Not financial advice. FX risk is symmetric — you can win or lose. Over 30 years CAD/USD swings tend to wash out, so most long-horizon Canadians don\'t bother hedging equity.