NASDAQ-100 Currency Hedged CAD
The NASDAQ-100 Currency Hedged Index is designed to represent returns for the NASDAQ-100 Index (NDX) (the Underlying Index) and global investment strategies used on the Underlying Index that involve hedging currency risk, but not the underlying constituent risk. The hedge ratio of the index is the proportion of the portfolio’s currency exposure that is hedged. The index uses a hedge ratio of 100%. By selling foreign exchange forward contracts, global investors are able to lock in current exchange forward rates, and manage their currency risk. Profits (losses) from the forward contracts are offset by losses (profits) in the value of the currency, thereby negating exposure to the currency.
The index is hedged against the Canadian Dollar.